Reference no: EM133165609

Question - The accounts of Vella Company include Land, Buildings and Equipment. Vella has a separate accumulated depreciation account for each asset. During 2007, the company completed the following transactions:

Jan. 1 Traded in equipment with accumulated depreciation of $90,000 (cost of $130,000) for similar new equipment. Vella also paid $80,000 cash.

July 1 Sold a building that cost $550,000 and that had accumulated depreciation of $250,000 through December 31 of the preceding year. Vella received $100,000 cash and a $200,000 note receivable.

Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $50,000.

Aug. 31 Purchased land and a building for a lump-sum payment of $300,000. An independent appraisal valued the land at $105,000 and the building at $210,000.

Dec. 31 Depreciation on buildings is straight-line. The new building has a 40-year useful life and a residual value equal to $50,000.

Required - Record the transactions in Vella ´s journal.