Central Freight Lines provides general freight service in the central United States. The company's balance sheet includes the following assets under Property, Plant, and Equipment: Land, Buildings, Motor-Carrier Equipment, and Leasehold Improvements. Assume that the company has a separate accumulated depreciation account for each of these assets except land and leasehold improvements. Amortization on leasehold improvements is credited directly to the Leasehold Improvements account rather than to Accumulated Amortization-Leasehold Improvements.

Assume that Central Freight Lines completed the following transactions:

Jan. 5 Traded in motor-carrier equipment with book value of \(\$ 47,000\) (cost of \(\$ 130,000\) ) for similar new equipment with a cash cost of \(\$ 176,000\). Central received a trade-in allowance of \(\$ 60,000\) on the old equipment and paid the remainder in cash.

Feb. 22 Purchased motor-carrier equipment for \(\$ 136,000\) plus 5-percent sales tax and \(\$ 200\) title fee. The company gave a 60 -day, 12 -percent note in payment.

Apr. 23 Paid the equipment note and related interest.

July 9 Sold a building that had cost \(\$ 550,000\) and had accumulated depreciation of \(\$ 247,500\) through December 31 of the preceding year. Depreciation is computed on a straightline basis. The building has a 30 -year useful life and a residual value of \(\$ 55,000\). Consolidated received \(\$ 100,000\) cash and a \(\$ 600,000\) note receivable.

Aug. 16 Paid cash to improve leased assets at a cost of \(\$ 10,200\).

Oct. 26 Purchased land and a building for a single price of \(\$ 300,000\). An independent appraisal valued the land at \(\$ 115,000\) and the building at \(\$ 230,000\).

Dec. 31 Recorded depreciation as follows:

Motor-carrier equipment has an expected useful life of five years and an estimated residual value of 5 percent of cost. Depreciation is computed on the doubledeclining-balance method. Make separate depreciation entries for equipment acquired on January 5 and February 22.

Amortization on leasehold improvements is computed on a straight-line basis over the life of the lease, which is 10 years, with zero residual value.

Depreciation on buildings is computed by the straight-line method. The company had assigned to its older buildings, which cost \(\$ 200,000,000\), an estimated useful life of 30 years with a residual value equal to 10 percent of the asset cost. However, management has come to believe that the buildings will remain useful for a total of 40 years. Residual value remains unchanged. The company has used all its buildings, except for the one purchased on October 26 , for 10 years. The new building carries a 40 -year useful life and a residual value equal to 10 percent of its cost. Make separate entries for depreciation on the building acquired on October 26 and the other buildings purchased in earlier years.

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Record the transactions in the general journal.