To record this transaction, debit a Drawing account and credit Cash. Has a machine with a book value of \(940,000.When we're talking about the gain or loss of the sale of an asset we need to be looking at net book value at the time of the sale. New transfer from fixed asset account to bank account, the amount is equal to your sale price. 2. The prior insurance policy on Travis's operating assets expired on this date; prepare a journal entry to record this event. The Travis Company uses the spreadsheet method for completing the statement of cash flows. Journal Entry for Intangible Assets With a Limited Life. This video explains how to calculate and account for a sale of an asset when there is a gain or loss.