Guilda Bell 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 asset. During 2011, Bell completed the following transactions:

Requirement
1. Record the transactions in the journal of Guilda Bell Associates. Bell ends its accounting year on December 31.

Transcribed Image Text:

Jan 1 Traded in old office equipment with book value of $38,000 (cost of $130,000 and accumulated depreciation of $92,000) for new equipment. Bell also paid $82,000 in cash. Apr 1 Acquired land and communication equipment in a group purchase. Total cost was $450,000 paid in cash. An independent appraisal valued the land at $354,375 and the communication equipment at $118,125. Sep 1 Sold a building that cost $580,000 (accumulated depreciation of $280,000 through December 31 of the preceding year). Bell received $360,000 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 $40,000. Recorded depreciation as follows: Dec 31 Communication equipment is depreciated by the straight-line method over a 5-year life with zero residual value. Office equipment is depreciated using the double-declining-balance over 6 years with $3,000 residual value.