Ellie Johnson Associates surveys American eating habits. The company's accounts include Land, Buildings, Office Equipment, and Communication Equipment, with a separate Accumulated Depreciation account for each depreciable asset. During 2018, Ellie Johnson Associates completed the following transactions:
Jan. 1 Purchased office equipment, $113,000. Paid $80,000 cash and financed the remainder with a note payable.
Apr. 1 Acquired land and communication equipment in a lump-sum purchase.
Total cost was $310,000 paid in cash. An independent appraisal valued the land at $244,125 and the communication equipment at $81,375.
Sep. 1 Sold a building that cost $520,000 (accumulated depreciation of $285,000 through December 31 of the preceding year). Ellie Johnson Associates received $420,000 cash from the sale of the building. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $25,000.
Dec. 31 Recorded depreciation as follows:
Communication equipment is depreciated by the straight-line method over a five-year life with zero residual value.
Office equipment is depreciated using the double-declining-balance method over five years with a $1,000 residual value.
Record the transactions in the journal of Ellie Johnson Associates.