Chapter 7, Problem 7.69AP

(Learning Objectives 1, 3, 4: Measure and account for the cost of plant assets and depreciation; analyze and record a plant asset disposal) Blair, Inc., has the following plant asset accounts: Land. Buildings, and Equipment, with a separate accumulated depreciation account for each of these except Land. Blair completed the following transactions:

Jan 3	Traded in equipment with accumulated depredation of $63,000 (cost of $130,000, for similar new equipment with a cash cost of $171,000. Received a trade-in allowance of $71,000 on the old equipment and paid $ 100,000 in cash.
Jun 30	Sold a building that had a cost of $635,000 and had accumulated depreciation of $170,000 through December 31 of the preceding year. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $295,000. Blair received $135,000 cash and a $325,750 note receivable.
Oct 31	Purchased land and a building for a single price of $340,000 cash. An independent appraisal valued the land at $108,900 and the building at $254,100.
Dec 31	Recorded depreciation as follows: Equipment has an expected useful life of five years and an estimated residual value of 5% of cost. Depreciation is computed using the double-declining-balance method. Depreciation on buildings is computed using the straight-line method. The new building carries a 40-year useful life and a residual value equal to 10% of its cost.

Requirement

1     Record the transactions in Blair’s journal.