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During 2020, Company ABC completed the following transactions. The company's accounts include Land, Buildings, Office Equipment, and Communication Equipment, with a separate Accumulated Depreciation account
During 2020, Company ABC completed the following transactions. The company's accounts include Land, Buildings, Office Equipment, and Communication Equipment, with a separate Accumulated Depreciation account for each asset. Jan. 1 Apr. 1 Sep. 1 Purchased office equipment, $ 104,000. Paid $ 45,000 cash and financed the remaining with a note payable. (3 points) Acquired land and communication equipment in a lump-sum purchase. Total cost was $ 450.000 paid in cash. An independent appraisal valued the land at $380.000 and the communication equipment at $ 76,000. (5 points) Sold a building that cost $ 521,800 (accumulated depreciation of $ 207.000 through December 31 of the preceding year). The company received $440,000 cash from the sale of the building. Depreciation is computed on a straight-line basis. The building has a 36-year useful life and a residual value of $ 45,000. (Hint: don't forget to include partial depreciation for 2020 while making your calculations and recording this transaction) (6 points) Recorded depreciation as follows: Communication equipment is depreciated by the straight-line method over a five-year life with $ 5,000 residual value. (hint: Communication equipment is acquired on April 1) Dec. 31 Office equipment is depreciated using the double-declining-balance method over eight years with a $ 4,000 residual value. (6 points) Record the transactions in the journal of Company ABC.Don't forget to include explanations. (Show your calculations to receive partial credit) Date Accounts and Explanation Credit Det Jan 1 Apr. 1 Sep. 1 Dec. 31
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