Problem:
On April 1, 2007 Pepsi received an 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 state 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, Pepsi 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 on April and August 1, 2007.