On December 31, 2016, Vail Company owned the following assets:

Asset	Date of	Cost	Accumulated	Life in	Residual
	Purchase		Depreciation	Years	Value
Building	1/1/2014	$50,000	$3,750(a)	40	$0
Office machinery	1/1/2014	20,000	9,760(b)	10	2,000
Office fixtures	1/1/2014	30,000	20,000(c)	5	5,000

(a) Straight-line depreciation; (b) Double-declining-balance depreciation; (c) Sum-of-the-years-digits depreciation

Vail computes depreciation and amortization expense to the nearest whole year. During 2017, Vail engaged in the following transactions:

Jan. 3

Extended the building at a cost of $30,000. The extension provided an addition to the service potential of the building. Vail paid cash for the building extension.

Mar. 7

Sold a piece of office machinery that had originally cost $4,000 and that had accumulated depreciation of $1,952 on December 31, 2016. The machine was sold for $3,000.

May 17

Purchased office fixtures and office machinery for $9,200. The supplier reduced the price because of the joint purchase. If purchased separately, the office fixtures would have cost $6,000 and the office machinery $4,000. Delivery costs paid by Vail were $200. The machinery was accidentally damaged during installation and cost $230 to repair. The office fixtures have an estimated life of 5 years and a residual value of $250. The office machinery has an estimated life of 10 years and a residual value of $500.

Aug. 10

Exchanged the presidents desk (classified as office fixtures) for a larger desk belonging to a friend of the president. The desk had cost $600 and had accumulated depreciation on December 31, 2016, of $400 and an estimated residual value of $100. The new desk had a value of $900 and $700 cash was paid.

Oct. 20

Serviced and adjusted the office machinery at a cost of $125.

Prepare journal entries to record Vails transactions in 2017, as well as the year-end recording of depreciation expense on December 31, 2017. Additional Information

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GENERAL JOURNAL

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Comprehensive Instructions | Chart of Accounts General Journal |Analysis Analysis Prepare an Accumulated Depreciation account for each category of assets, enter the beginning balance, post the journal entries from Requirement 2, and compute the ending balance. 1. Check the accuracy of the accumulated depreciation balances at December 31, 2016. Enter the confirmed balance for each asset category in the Accumulated Depreciation as of 12/31/16 column of the following table. Round to the nearest whole dollar in all requirements 2. Post the journal entries from Requirement 2 and compute the ending balance. 2017 Accumulated Depreciation as of 12/31/16 Accumulated Depreciation as of 12/31/17 Asset Type Depreciation Expense Disposals Building Office machinery $ Office fixtures$ Comprehensive Instructions | Chart of Accounts General Journal |Analysis Analysis Prepare an Accumulated Depreciation account for each category of assets, enter the beginning balance, post the journal entries from Requirement 2, and compute the ending balance. 1. Check the accuracy of the accumulated depreciation balances at December 31, 2016. Enter the confirmed balance for each asset category in the Accumulated Depreciation as of 12/31/16 column of the following table. Round to the nearest whole dollar in all requirements 2. Post the journal entries from Requirement 2 and compute the ending balance. 2017 Accumulated Depreciation as of 12/31/16 Accumulated Depreciation as of 12/31/17 Asset Type Depreciation Expense Disposals Building Office machinery $ Office fixtures$