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Whitney Plumb Associates surveys American eating habits. The company's accounts include Land, Buildings, Office Equipment, and Communication Equipment, with a separate Accumulated Depreciation account for
Whitney Plumb 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 depreciable asset. During Whitney Plumb Associates completed the following transactions:
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Record the transactions in the journal of Whitney Plumb Associates. Record debits first, then credits. Select the explanation on the last line of the journal entry table.
Jan. : Purchased office equipment, $ Paid $ cash and financed the remainder with a note payable. Record a single compound journal entry.
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Jan. Purchased office equipment, $ Paid $ cash and financed the remainder
with a note payable.
Apr. Acquired land and communication equipment in a lumpsum purchase. Total cost was
$ paid in cash. An independent appraisal valued the land at $ and the
communication equipment at $
Sep. Sold a building that cost $accumulated depreciation of $ through
December of the preceding year Whitney Plumb Associates received $ cash
from the sale of the building. Depreciation is computed on a straightline basis. The
building has a year useful life and a residual value of $
Dec. Recorded depreciation as follows:
Communication equipment is depreciated by the straightline method over a fiveyear life
with zero residual value. Office equipment is depreciated using the doubledeclining
balance method over five years with a $ residual value.
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