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Tarrier Tarrier 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

Tarrier

Tarrier 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 Ruthie

Tarrier completed the following?transactions:

image text in transcribed Jan. 1 Purchased office equipment, $110,000. Paid $73,000 cash and financed the remaining with a note payable. Apr. 1 Acquired land and communication equipment in a lump-sum purchase. Total cost was $420,000 paid in cash. An independent appraisal valued the land at $330,750 and the communication equipment at $110,250. Sep. 1 Sold a building that cost $560,000 (accumulated depreciation of $270,000 through December 31 of the preceding year). Tarrier received $370,000 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 $50,000. 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 5,000 residual value. Jan. 1: Purchased office equipment, $110,000. Paid $73,000 cash and financed the remaining with a note payable. (Record a single compound journal entry.) Date Accounts and Explanation Debit Credit Jan. 1 Apr. 1: Acquired land and communication equipment in a lump-sum purchase. Total cost was $420,000 paid in cash. An independent appraisal valued the land at $330,750 and the communication equipment at $110,250. (Record a single compound journal entry.) Date Accounts and Explanation Apr. 1 Sep. 1: Sold a building that cost $560,000 (accumulated depreciation of $270,000 through December 31 of the preceding year). Tarrier received $370,000 Debit Credit 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 $50,000. Before we record the sale of the building, we must record depreciation on the building through September 1, 2016. Date Accounts and Explanation Debit Credit Debit Credit Sep. 1 Now record the sale of the building on September 1. Date Accounts and Explanation Sep. 1 Dec. 31: Record depreciation on the communication equipment. Communication equipment is depreciated by the straight-line method over a five-year life with zero residual value. Date Accounts and Explanation Debit Credit Dec. 31 Dec. 31: Record depreciation on the office equipment. Office equipment is depreciated using the doubledeclining-balance method over five years with a $5,000 residual value. Date Dec. 31 Accounts and Explanation Debit Credit

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