1. During 2013, Flyer Company made the following transactions:

April 1: Purchased a building which sold for $1,250,000, not including broker fees of $39,500, delinquent taxes of $27,500 and title and attorney costs of $123,000. At closing, the company paid for the annual property insurance of $45,000 for the coming year.

May 1: Sold equipment that cost $600,000 when purchased on January 1, 2008. The equipment was sold for cash of $350,000.

June 1: Sold land purchased on June 1, 1992, for $1,800,000, cash. The land cost $300,000.

2. Additional information required to properly complete the assignment:

a) Management decided that all equipment has useful lives of 10 years and all buildings have useful lives of 40 years. Management assumes no salvage value on its fixed assets. The company uses straight line depreciation.

b) The balance in the equipment account at the start of 2013 was $1,775,000. It represented 2 pieces of equipment.

3. Instructions:

a) Make the journal entries for the 3 events.

b) Dont forget to update depreciation before removing an asset from the ledger account.

c) Make the adjusting journal entries at year end, December 31. There should be separate adjusting entries for the new building and the previously purchased equipment. (The previously purchased equipment was acquired for $1,175,000.)