Sold Old Newspaper Journal Entry

A newspaper is a daily or weekly publication that contains news articles, editorials, and other items such as advertisements and classified ads. Newspapers are typically printed on low-quality paper and are intended to be read quickly and then discarded.

However, some newspapers are now also published online, and many news organizations offer both print and digital subscription options. In addition to traditional news stories, newspapers may also include comics, puzzles, and other features. Although the newspaper industry has been in decline in recent years, there is still a large audience for newsprint publications.

The newspaper has long been a staple of the morning routine for many people. However, with the advent of digital news sources, some have begun to question the value of the newspaper. While it is true that most newspapers are only printed once a day, and therefore their content can quickly become outdated, there are still many reasons to read the newspaper.

For one, newspapers typically provide more in-depth coverage of stories than digital sources. Even though the content of a newspaper may only be relevant for a day, the paper itself can be saved and recycled, making it a more sustainable choice than its digital counterparts. Therefore, despite its drawbacks, the newspaper still has plenty of value.

The old newspaper can be sold for recycling at a very low price. The company may keep the old newspapers and sell them within a few months. It is the revenue that the company record on the income statement.

Journal Entry for Sale Old Newspaper

The company spends money to purchase the newspaper for office use. It is the expense that company has to record on the income statement. It is usually part of the other expenses.

The journal entry is debiting other expenses and credit cash.

The company may decide to sell the old newspaper after several months. It is not part of the company’s business operation. So the income from selling such items will record as the other income. It is not required to match the cost of purchasing a newspaper.

The journal entry is debiting cash and crediting other income.

The transaction will increase the cash balance on balance sheet. The other income will record on the income statement.

Example

Company ABC purchases the newspaper from the local supplier. It has to pay a monthly fee of $ 500 per month. The employee has gone through the old newspaper and sold them for $ 100. Please prepare the journal entry for selling the old newspaper.

The company has spent the monthly purchase of newspapers $ 500 from the local supplier. It is the monthly expense that company has to record on income statement.

It is not the cost of goods sold as the newspaper is not meant to resell for profit. It is the expense as the company is the consumer.

The journal entry is debiting other expenses $ 500 and credit cash $ 500.

The employee has collected the old newspaper and sold them as scrap paper. It is not the main business activity. It is not meant to generate income for the company. The company has to record it as the other income.

The journal entry is debiting cash $ 100 and credit other income $ 100.