Chung, Inc., has the following plant asset accounts: Land, Buildings, and Equipment, with a separate accumula (Click the icon to view the transactions.) Read the requirement. Date Accounts Debit Credit Jan 3 Equipment (New) 181,000 Accumulated Depreciation - Equipment 65,000 Equipment (Old) 133,000 Cash -109,000 Gain on Exchange of Equipment 4,000 Jun 30: Sold a building that had a cost of $660,000 and had accumulated depreciation of $100,000 through De residual value of $220,000. Chung received $140,000 cash and a $414,500 note receivable. Before we record the sale of the building, we must record the depreciation expense for the current year. Start b Journal Entry Date Accounts Debit Credit Jun 30 Depreciation Expense - Building 5,500 Accumulated Depreciation - Building 5,500 Now record the sale of the building. Journal Entry Date Accounts Debit Credit June 30 Cash Accumulated Depreciation - Building Note Receivable Building 1.000 1.000 000 More info X hrough Del ul life ar. Start b It Jan 3 Traded in equipment with accumulated depreciation of $65,000 (cost of $133,000) for similar new equipment with a cash cost of $181,000. Received a trade-in allowance of $72,000 on the old equipment and paid $109,000 in cash. Jun 30 Sold a building that had a cost of $660,000 and had accumulated depreciation of $100,000 through December 31 of the preceding year. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $220,000. Chung received $140,000 cash and a $414,500 note receivable. Oct 31 Purchased land and a building for a single price of $320,000 cash. An independent appraisal valued the land at $70,200 and the building at $280,800. Dec 31 Recorded depreciation as follows: Equipment has an expected useful life of ten years and an estimated residual value of 4% of cost. Depreciation is computed using the double-declining-balance method. Depreciation on buildings is computed using the straight-line method. The new building carries a 40-year useful life and a residual value equal to 10% of its cost. 5,500 it Print Done