Homework) Chapter 8 Homework Question 3, P8-47A (sim

Homework) Chapter 8 Homework Question 3, P8-47A (sim... Part 3 of 6 HW Score: 33.55%, 6.71 of 20 points Points: 1.71 of 5 Save Howard Freightway provides freight service. The company's balance sheet includes Land, Buildings, and Motor-carrier equipment. Howard Freightway uses a separate accumulated depreciation account for each depreciable asset During 2018, Howard Freightway completed the following transactions: (Click the icon to view transaction data.) Requirement 1. Record the transactions in Howard Freightway's journal. (Record debits first, then credits. Exclude explanations from all journal entries.) Date Accounts Debit - X Jan 1 149,000 More info Motor-carrier equipment (new) Accumulated depreciation, motor-carrier equipment Motor-carrier equipment (old) 81,000 Jan 1 Cash Gain on exchange Jul 1 Jul 1: Sold a building that cost $545,000 and had accumulated depreciation of $245,000 through December 3 life and a residual value of $45,000. Howard Freightway received $120,000 cash and a $660,000 note receive Start by recording depreciation expense on the building through July 1. Traded in motor-carrier equipment with accumulated depreciation of $81,000 (cost of $150,000) for new equipment with a cash cost of $149,000. Howard Freightway received a trade-in allowance of $64,000 on the old equipment and paid the remainder in cash. Sold a building that cost $545,000 and had accumulated depreciation of $245,000 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 $45,000. Howard Freightway received $120,000 cash and a $660,000 note receivable. Purchased land and a building for a cash payment of $500,000. An independent appraisal valued the land at $137,500 and the building at $487,500. Recorded depreciation as follows: New motor-carrier equipment has an expected useful life of 1,000,000 miles and an estimated residual value of $19,000. Depreciation method is the units-of-production method. During the year, Howard Freightway drove the equipment 170,000 miles. Depreciation on buildings is straight-line. The new building has a 40-year useful life and a residual value equal to $30,000. Oct 31 Journal Entry Dec 31 Date Accounts Debit 6,250 Jul 1 Depreciation expense, building Accumulated depreciation, building Now record the sale of the building Journal Entry Print Done Date Accounts Debit Jul 1 Cash 1200001 660000 Note receivable Accumulated depreciation, building Building Gain on sale of building