Schmaltz Cable Company's balance sheet reports the following assets under Property and Equipment: Land, Buildings, Office Furniture, Communication Equipment, and Televideo Equipment. The company has a separate accumulated depreciation account for each of these assets except land. Assume that Schmaltz completed the following transactions:
Jan. 3 Traded in communication equipment with accumulated depreciation of $85,000 (cost of $96,000) for similar new equipment with a quoted price of $118,000. The seller gave Schmaltz a trade-in allowance of $18,000 on the old equipment, and Schmaltz paid $100,000 in cash.
June 30 Sold a building that had cost of $495,000 and had accumulated depreciation of $255,000 through December 31 of the preceding year. Depreciation is computed on a straight-line basis. The building has a 40-year life and a residual value of $95,000. Schmaltz received $50,000 cash and a $250,000 note receivable.
Nov. 4 Purchased used communication and televideo equipment from Time Warner Cable. Total cost was $80,000 paid in cash. An independent appraisal valued the communication equipment at $75,000 and the televideo equipment at $25,000.
Dec. 31 Recorded depreciation as follows:
Equipment is depreciated by the double-declining-balance method over a 5-year life with zero residual value. Record depreciation separately on the equipment purchased on January 3 and on November 4.
Required
Record the transactions in the journal of Schmaltz Cable Company.