Tarrier, Inc., has the following plant asset accounts: Land, Buildings, and equipment, with a separate accumulated depreciation account for each of these except Land. Tarrier completed the following transactions:

Requirement 1. Record the transactions in Tarrier's journal

Jan 3: Traded in equipment with accumulated depreciation of $61,000 (cost of $134,000) for similar new equipment with a cash cost of $178,000. Received a trade in allowance of $75,000 on the old equipment and paid $103,000 in cash.

Jan 30: Sold a building that had a cost of $650,000 and had accumulated depreciation of $135,000 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 $250,000. Tarrier received $125,000 cash and a $385,000 note receivable. Before we record the sale of building, we must record the depreciation expense for the current year. Start by journalizing depreciation expense on the building through June 30.

New record the sale of the building.

Oct 31: Purchased land a building for a single price of $360,000 cash. An independent appraisal valued the land at $152,000 and the building at $228,000.

Dec 31: Equipment has an expected useful life of 4 years and an estimate residual value of 9% of cost. Depreciation is computed on the double declining balance method. Prepare the entry to record depreciation on equipment through December 31.

Dec 31: Depreciation on buildings is computed by the straight line method. The new building carries a 40-year useful life and a residual value equal to 30% of its cost. Prepare the entry to record depreciation on building.