Whitney Plumb 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, Whitney Plumb completed the following transactions:

Requirement
1. Record the transactions in the journal of Whitney Plumb Associates. The company ends its accounting year on December 31.

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Jan 1 Traded in old office equipment with book value of $26,000 (cost of $126,000 and accumulated depreciation of $100,000) for new equipment. Plumb also paid $82,000 in cash. Apr 1 Acquired land and communication equipment in a group purchase. Total cost was $410,000 paid in cash. An independent appraisal valued the land at $322,875 and the communication equipment at $107,625. Sep 1 Sold a building that cost $565,000 (accumulated depreciation of $265,000 through December 31 of the preceding year). Plumb received $350,000 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 $45,000. Dec 31 Recorded depreciation as follows: Communication equipment is depreciated by the straight-line method over a 5-year life with zero residual value. Office equipment is depreciated double-declining-balance over 6 years with $4,000 residual value.