Do Homework loanne Chau-Google Chrome https//www.matholc ACCT 311 Fall 2017 CC04

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Do Homework loanne Chau-Google Chrome https//www.matholc ACCT 311 Fall 2017 CC04 MyAccountingl ab Joanne Chau& 11/11/17 8:17 PM Homework: Assignment 5 Score: 0 of 1 pt P8-2A (similar to) Save 30f4(2 complete ; HW Score: 28.03%, 1 12 of 4 pts Question Hep * Haley Freightway provides freight service. The company's statement of inancial position includes Land, Buildings, and Motor-Carrier Equipment Haley Freightway uses a separate accumulated depreciation account for each depreciable asset During 2015, Haley Freightway completed the following transactions (Click the icon to view transaction data ) Requir 1. Record the transactions in Haley Freightway's journal Requirement 1. Record the bransactions in Haley Freightway's journal Jan 1: Traded in motor carrier equipment with accumulated depreciation of $84,000 (cost of $138,000) for similar new equipment with a cash cost of $184 000 Haley Freightway received a trade-ih allowance of $75000 on the old equipment and paid the remainder in cash (Record debis tirst. then credts Explanaions are not required) Journal Entry Date Accounts Debit Credit Jan 1 Data Table Jan 1 Traded in motor-camier equipment with accumulated depreciation of $84.000 (cost of $138.000) for new equipment with a cash cost of $184,000 Haley Freightway received a trade-in allowance of $75,000 on the old equipment and paid the remainder in cash Jul 1 Sold a building that cost $560,000 and had accumsulated depreciation of $260,000 through December 31 of the preceding year Depreciation is computed on a straight-ine basis The building has a 40-year useful life and a residual value of $40,000 Haley Freightway received $90,000 cash and a $650,000 note receivable Ot 31 Purchased land and a building for a cash payment of $500,000 An independent aisal valued the land at $200,000 and the building at $400,000 Dec 31 Recorded depreciation as follows New motor-carrier equipment has an expected uselul lHe of 1 million kilometres and an estimated residual vakue of $24,000 Depreciation method is the units-of-production method During the year, Haley Freightway 130,000 klometres Depreciation on buildings is straight-line. The new building has a 40- year useful lfe and a residual value equal to $10.000 drove the truck Choose from any ist or Check Answer parts

Explanation / Answer

Date Accounts Title Dr in $ Cr in $ 1-Jan Accumulate Dep- Motor carrier Equipment Dr. 84000 New Equipment Dr. 184000 Motor Carrier Equipment Cr. 138000 Cash Account Cr. 109000 Gain On Disposal of Assets Cr. 21000 1-Jul Depreciation expense Dr. 6500 Accumulated Depreciation-building Cr. 6500 (Being depreciation for 6 months charged on the date of sale) Accumulated dep-Building Dr. 266500 cash Dr. 90000 Note Receivable Dr 650000 Building Cr. 560000 Gain On disposal of assets Cr. 446500 31-Oct Land Dr. 166667 Building Dr. 333333 Cash account Cr. 500,000 (Being land and building purchased at a total of $ 500,000 apportione din fair value ratio) 31-Dec Depreciation Expense Dr. 28883 Accumulated Dep-Building 8083 Accumulated Dep-New equipment 20800 (Depreciation on building = 333,333-10000 /40) (Depreciation on equipment = 184000-24000/1000,000 *130,000)

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