P7-63A. (Learning Objectives 1, 2: Recording PPE transactions; reporting on the Balance Sheet) Rocco Lakes Resort reported the following on its Balance Sheet at December 31, 20X6:

In early July 20X7, the resort expanded operations and purchased additional equipment at a cost of $108,000. The company depreciates buildings by the straight-line method over 20 years with residual value of $84,000. Due to obsolescence, the equipment has a useful life of only 10 years and is being depreciated by the double-declining-balance method with zero residual value.
Requirements 1. Journalize Rocco Lakes Resort’s PPE purchase and depreciation transactions for 20X7.
2. Report PPEs on the December 31, 20X7, Balance Sheet.

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Property, plant, and equipment, at cost: Land.. Buildings. Less: Accumulated depreciation $ 146,000 709,000 (342,000) Equipment...... 405,000) Less: Accumulated depreciation (265,000)