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Journal entries for recording transactions of disposition and purchase of asset.

On April 1, 2007, Gloria Estefan Company received a condemnation award of $430,000 cash as compensation for the forced sale of the company’s land and building, which stood in the path of a new highway. The land and building cost $60,000 and $280,000, respectively, when they were acquired At April 1, 2007, the accumulated depreciation relating to the building amounted to $160,000. On August 1,2007, Estefan purchased a piece of replacement property for cash. The new land cost $90,000, and the new building cost $400,000.

Prepare the journal entries to record the transactions April1 and August 1, 2007.

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