Carney, Inc., has the following plant asset accounts: Land, Buildings, and Equipment, with a… 1 answer below »

Carney, Inc., has the following plant asset accounts: Land, Buildings, and Equipment, with a separate accumulated depreciation account for each of these except Land. Carney completed the following transactions: Jan 3 Traded in equipment with accumulated depreciation of $68,000 (cost of $131,000) for similar new equipment with a cash cost of $178,000. Received a trade-in allowance of $73,000 on the old equipment and paid $105,000 in cash. Jun 30 Sold a building that had a cost of $640,000 and had accumulated depreciation of $100,000 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 $240,000. Carney received $120,000 cash and a $415,000 note receivable. Oct 31 Purchased land and a building for a single price of $320,000. An independent appraisal valued the land at $70,200 and the building at $280,800. Dec 31 Recorded depreciation as follows: Equipment has an expected useful life of 4 years and an estimated residual value of 12% of cost. Depreciation is computed on the double-declining-balance method. 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 10% of its cost. Requirement 1. Record the transactions in Carney, Inc.’s journal.

 

Looking for a Similar Assignment? Let us take care of your classwork while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today! Use Code FREE15