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

Requirement

1. Record the transactions in Blair’s journal.

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Traded in equipment with accumulated depreciation of $63,000 (cost of $130,000) for similar new equipment with a cash cost of $171,000. Received a trade-in allowance of $71,000 on the old equipment and paid $100,000 Jan 3 in cash. Sold a building that had a cost of $635,000 and had accumulated depreciation of $170,000 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 $295,000. Blair received $135,000 cash and a $325,750 note receivable. Purchased land and a building for a single price of $340,000 cash. An indepen- dent appraisal valued the land at $108,900 and the building at $254,100. Recorded depreciation as follows: Equipment has an expected useful life of five years and an estimated residual value of 5% of cost. Depreciation is computed using the double-declining-balance Jun 30 Oct 31 Dec 31 method. Depreciation on buildings is computed using the straight-line method. The new building carries a 40-year useful life and a residual value equal to 10% of its cost.