Johnson

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

2016

Ellie

Johnson

completed the following transactions:

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Record the transactions in the journal of

Ellie

Johnson

Associates. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Jan. 1: Purchased office equipment,

$117,000.

Paid

$78,000

cash and financed the remaining with a note payable

Jan. 1	Purchased office equipment, $117,000. Paid $78,000 cash and financed the remaining with a note payable.
Apr. 1	Acquired land and communication equipment in a lump-sum purchase. Total cost was $430,000 paid in cash. An independent appraisal valued the land at $338,625 and the communication equipment at $112,875.
Sep. 1	$420,000 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 five-year life with zero residual value. Office equipment is depreciated using the double-declining-balance method over five years with a $1,000 residual value.