(Learning Objectives 2, 3: Recording PPE transactions; reporting on the balance sheet) Rossi 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 €105,000. The company depreciates buildings by the straight-line method over 20 years with residual value of €89,000. 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 Rossi Lakes Resort’s PPE purchase and depreciation transactions for 20X7.

2. Report PPE on the December 31, 20X7, balance sheet.