Regional Highway Transport is a large trucking company. Regional Highway Transport uses the units-of-production (UOP) method to
Question:
Regional Highway Transport is a large trucking company. Regional Highway Transport uses the units-of-production (UOP) method to depreciate its trucks. In 2013, Regional Highway Transport acquired a Mack truck costing $410,000 with a useful life of 10 years or 1,250,000 kilometers. Estimated residual value was $10,000. The truck was driven 85,000 kilometers in 2013, 110,000 kilometers in 2014, and 150,000 kilometers in 2015. After 10,000 kilometers in 2016, Regional Highway Transport traded in the Mack truck for a new Freightliner that costs $524,400. Regional Highway Transport received a $314,400 trade-in allowance for the old truck and paid the difference in cash. Journalize the entry to record the purchase of the new truck.
Step by Step Answer:
Journal DATE ACCOUNTS POST REF DR CR 2016 Truck new 524400 AccumulatedDepreciation Truck old 113600 Truck old 410000 Cash524400 314400 210000 Gainon Exchange 18000 Unitsofproduction 410000 10000 1250000 kilometers 032 per kilometer Year 1 85000 kilometers 032 27200 Year 2 110000 kilometers 032 35200 Year 3 150000 kilometers 032 48000 Year 4 10000 kilometers 032 3200 Total 113600 Tradein value 314400 Book value of old truck Cost 410000 Less Accumulated ...View the full answer
Financial Accounting
ISBN: 978-0132889711
1st Canadian Edition
Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper
Students also viewed these Accounting questions
-
Bison Transport is a large trucking company that operates from Ontario to British Columbia in Canada and in the United States. Bison uses the units-of-production (UOP) method to depreciate its trucks...
-
Bison Transport is a large trucking company that operates from Ontario to British Columbia in Canada and in the United States. Bison uses the units-of-production (UOP) method to depreciate its trucks...
-
Essex County Transport is a large trucking company. Essex County Transport uses the units-of-production (UOP) method to depreciate its trucks. In 201 1 , Essex County Transport acquired a Mack truck...
-
Write the formulas of these compounds: sulfur trioxide; phosphorus pentachloride; dinitrogen tetroxide.
-
Suppose the U.S. dollar appreciates for a period of time and then returns to its initial level. Compare a 10 percent appreciation that lasts for 2 years and a 50 percent appreciation that lasts 6...
-
In the analog hierarchy of Figure 6.9, find the overhead (extra bandwidth for guard band or control) in each hierarchy level (group, supergroup, master group, and jumbo group). Figure 6.9 48 kHz 12...
-
Late Flights Among the flights included in the sample of flights in Data Set 15 of Appendix B, 21% arrived late. Determine whether the given value is a statistic or a parameter. Data set name is...
-
In an attempt to improve budgeting, the controller for Meliore, Inc., has developed a flexible budget for overhead costs. Meliore, Inc., makes two types of products, the standard model and the deluxe...
-
Live snow load = 25 psf Dead load: (1) Roof and Sheathing = 7 psf, (2) Rafters = 8 lb/ft, (3) Beam = 15 lb/ft Roof pitch: 9:12 Please round to the nearest one tenth (i.e., 0.1). Total load (LL DL) on...
-
Sitting in your Dallas office at the accounting firm Bachman, Trinity, and Smith, clacking away on your computer, it seems as though you could be doing this work from your home. You haven't spoken to...
-
Assume that Hector Corporations comparative balance sheet reported these amounts: Requirement Assume that on January 2, 2014, Hector sold 1/2 of its plant and equipment for $237,000 in cash....
-
Gegax Manufacturing incurred the following costs in acquiring land, making land improvements, and constructing and furnishing a new building. a. Purchase price of four acres of...
-
Scores in golf can be 0 (also called par), a positive integer (also called above par), or a negative integer (also called below par). The bar graph shows final scores of selected golfers from a 2013...
-
how do purchases affect the outcome of a prepared budget? Explain.
-
What is one way President Biden and President Trump reflect changes in American cultures and institutions? explain
-
In the "Financial Projections" section of a pitch deck, what does the term "burn rate" signify?
-
Describe your most important agent of socialization and why?
-
Ronald Salto is contemplating about investing with his best friend in a restaurant. His friend is promising Ronald a 15 percent on the investment, with the following cash flows for the next five...
-
The file named Makeupsortfont.xlsx contains our makeup data with certain dates shown in blue, red, or brown font. Sort the data so that the brown dates are on top, followed by the red dates and then...
-
Keating & Partners is a law firm specializing in labour relations and employee-related work. It employs 25 professionals (5 partners and 20 managers) who work directly with its clients. The average...
-
Discuss how the Sarbanes-Oxley Act has increased the importance of internal control to top managers of a company.
-
What principles of internal control apply to most businesses?
-
Graham Moran is reviewing the principle of segregation of duties. What are the two common applications of this principle?
-
Use the graphical interface for virt-manager on your c7host to provide your assignment virtual machine with an extra 2GiB disk. Divide this disk into 2 equal parts, which you combine into a volume...
-
1. How many networks in the above design? (1 mark) 2. What network devices can Device C & E? (2 mark) 3. What is the subnet mask set for PC1? (1 mark) 4. What is the default gateway set for labtop0?...
-
Remote desktop utilities are something we use everyday in helpdesk positions. Take a look at the different remote desktop options, why do you think utilizing one of these tools would be helpful than...
Study smarter with the SolutionInn App