Lifestyle Lighting Ltd. reported the following on its balance sheet at December 31, 2010:

Capital assets, at cost:

Land ............................................................................................. 150,000

Buildings....................................................................................... 400,000

Less Accumulated depreciation .......................................................(87,500)

Equipment .................................................................................... 600,000

Less Accumulated depreciation .......................................................(260,000)

In early July 2011, Lifestyle Lighting Ltd. expanded operations and purchased additional equip-

ment at a cost of $100,000. The company depreciates buildings by the straight-line method

over 20 years with residual value of $50,000. Due to obsolescence, the equipment has a useful

life of only 10 years and is being depreciated by the double-diminishing-balance method with

zero residual value.

Required

1. Journalize Lifestyle Lighting Ltd.'s capital equipment purchase and depreciation transac-

tions for 2011.

2. Report capital assets on the December 31, 2011, balance sheet.