Sequin Research surveys Canadian opinions about environmental issues. The company's balance sheet reports the following assets...

   

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Sequin Research surveys Canadian opinions about environmental issues. The company's balance sheet reports the following assets under Property, Plant, and Equipment: Land, Buildings, Office Furniture, Communication Equipment, and Computers. The company has a separate Accumulated Amortization account for each of these assets except land. Assume that the company completed the following transactions during 2020; Required Record the transactions in the journal of Sequin Research. Feb. 2 Traded in communication equipment with a book value of $40,000 (cost of $240,000) for similar new equipment with a fair market value of $205,000. The seller gave Sequin a trade-in allowance of $65,000 on the old equipment, and the company paid the remainder in cash. This transaction meets the criteria for commercial substance. Jul. 19 Sold a building that had cost $1,100,000 and had accumulated amortization of $785,000 through December 31, 2019. Amortization is computed on a straight-line basis. The building has a 30-year useful life and a residual value of $115,000. Sequin received $165,000 cash and a $1,350,000 note receivable. Oct. 21 Purchased used communication equipment and some computers from the A.C. Neilsen Company of Canada Ltd. Total cost was $210,000 and was paid in cash. An independent appraisal valued the communication equipment at $175,000 and the computers at $85,000. Dec. 31 Equipment is amortized by the DDB method over a six-year life. Amortization on the equipment purchased on February 2 and on October 21 is recorded separately. Amortization on buildings is computed by the straight-line method. The company had assigned buildings an estimated useful life of 30 years and a residual value that is 30 percent of cost. After using the buildings for 10 years, the company has come to believe that their total useful life will be 20 years. Residual value remains unchanged. The buildings cost $17,000,000. Amortization for the year must be recorded. Sequin Research surveys Canadian opinions about environmental issues. The company's balance sheet reports the following assets under Property, Plant, and Equipment: Land, Buildings, Office Furniture, Communication Equipment, and Computers. The company has a separate Accumulated Amortization account for each of these assets except land. Assume that the company completed the following transactions during 2020; Required Record the transactions in the journal of Sequin Research. Feb. 2 Traded in communication equipment with a book value of $40,000 (cost of $240,000) for similar new equipment with a fair market value of $205,000. The seller gave Sequin a trade-in allowance of $65,000 on the old equipment, and the company paid the remainder in cash. This transaction meets the criteria for commercial substance. Jul. 19 Sold a building that had cost $1,100,000 and had accumulated amortization of $785,000 through December 31, 2019. Amortization is computed on a straight-line basis. The building has a 30-year useful life and a residual value of $115,000. Sequin received $165,000 cash and a $1,350,000 note receivable. Oct. 21 Purchased used communication equipment and some computers from the A.C. Neilsen Company of Canada Ltd. Total cost was $210,000 and was paid in cash. An independent appraisal valued the communication equipment at $175,000 and the computers at $85,000. Dec. 31 Equipment is amortized by the DDB method over a six-year life. Amortization on the equipment purchased on February 2 and on October 21 is recorded separately. Amortization on buildings is computed by the straight-line method. The company had assigned buildings an estimated useful life of 30 years and a residual value that is 30 percent of cost. After using the buildings for 10 years, the company has come to believe that their total useful life will be 20 years. Residual value remains unchanged. The buildings cost $17,000,000. Amortization for the year must be recorded.

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General Journal DATE 2017 Feb ACCOUNT TITLES AND EXPLANATIONS POST REF 2 Communica... View the full answer