StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Younger Bus Lines - Research Paper Example

Comments (0) Cite this document
Summary
Younger Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2008, at a cost of $168,000. Over its 4-year useful life, the bus is expected to be driven 100,000 miles…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.4% of users find it useful
Younger Bus Lines
Read TextPreview

Extract of sample "Younger Bus Lines"

HW#10 Start 15 Nov 2008 at 08:00 PM Due 27 Nov 2008 at 01:00 AM Access after Due Yes. Mark Late Graded: Yes E10-2
Trudy Company incurred the following costs.
1.
Sales tax on factory machinery purchased
$5,000
2.
Painting of and lettering on truck immediately upon purchase
700
3.
Installation and testing of factory machinery
2,000
4.
Real estate broker's commission on land purchased
3,500
5.
Insurance premium paid for first year's insurance on new truck
880
6.
Cost of landscaping on property purchased
7,200
7.
Cost of paving parking lot for new building constructed
17,900
8.
Cost of clearing, draining, and filling land
13,300
9.
Architect's fees on self-constructed building
10,000
Instructions
Indicate to which account Trudy would debit each of the costs.
1.
Machinery Account
2.
Truck Account
3.
Machinery Account
4.
Land Account
5.
Truck Account
6.
Property Account
7.
Building Account
8.
Land Account
9.
Building Account
E10-5
Younger Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2008, at a cost of $168,000. Over its 4-year useful life, the bus is expected to be driven 100,000 miles. Salvage value is expected to be $8,000.
Compute the depreciation cost per unit. (Round answer to 2 decimal places.)
$1.60 per mile [(168000 - 8000)/100000]
Prepare a depreciation schedule assuming actual mileage was: 2008, 26,000; 2009, 32,000; 2010, 25,000; and 2011, 17,000.
Computation
End of Year
Year
Units of
Activity
Depreciation
Cost/Uint
=
Annual
Depreciation
Expense
Accumulated
Depreciation
Book
Value
2008
26000
$ 1.60
$ 41,600
$
$
2009
32000
$ 1.60
$ 51,200
2010
25000
$ 1.60
$ 40,000
2011
17000
$ 1.60
$ 27,200
E10-6
Kelm Company purchased a new machine on October 1, 2008, at a cost of $120,000.The company estimated that the machine will have a salvage value of $12,000. The machine is expected to be used for 10,000 working hours during its 5-year life.
Instructions
Compute the depreciation expense under the following methods for the year indicated.
Straight-line for 2008.
$ 21,600 [(120,000 - 12,000)/5]
Units-of-activity for 2008, assuming machine usage was 1,700 hours. (Round unit price per hour to 2 decimal places.)
$ 18,360 [{(120,000 - 12,000)/10,000} x 1,700]
Declining-balance using double the straight-line rate for 2008 and 2009.
2008
$ 48,000 [120,000 x 20% x 2]
2009
$ 28,800 [(120,000-48000) x 20% x 2]
E10-7
Brainiac Company purchased a delivery truck for $30,000 on January 1, 2008. The truck has an expected salvage value of $2,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,000 in 2008 and 12,000 in 2009.
Compute depreciation expense for 2008 and 2009 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining balance method.
Assume that Brainiac uses the straight-line method. (1) Prepare the journal entry to record 2008 depreciation. (2) Show how the truck would be reported in the December 31, 2008, balance sheet.
Description/Account
Debit
Credit
Depreciation Expense - Vehicles
$ 3500
Accumulated Depreciation - Vehicles
$ 3500
Cost of Vehicle - Truck
30000
Less: Accumulated Depreciation
3500
$26500
E10-9
Presented below are selected transactions at Ingles Company for 2008.
Jan. 1
Retired a piece of machinery that was purchased on January 1, 1998. The machine cost $62,000 on that date. It had a useful life of 10 years with no salvage value.
June 30
Sold a computer that was purchased on January 1, 2005. The computer cost $40,000. It had a useful life of 5 years with no salvage value. The computer was sold for $14,000.
Dec. 31
Discarded a delivery truck that was purchased on January 1, 2004. The truck cost $39,000. It was depreciated based on a 6-year useful life with a $3,000 salvage value.
Instructions
Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Ingles Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2007.) (List multiple debit/credit entries in descending order of amount.)
Date
Description
Debit
Credit
Jan. 1
Accumulated Depreciation - Machinery
62,000
Machinery Account
62,000
June 30
Depreciation Expense - Computer
4,000
Accumulated Depreciation - Computer
4,000
June 30
Accumulated Depreciation - Computer
28,000
Cash
14,000
Computer Account
40,000
Gain on Disposal of Computer
2,000
Dec. 31
Depreciation Expense - Delivery Truck
6,000
Accumulated Depreciation - Delivery Truck
6,000
Dec.31
Accumulated Depreciation - Delivery Truck
30,000
Loss on disposal of Truck
9000
Delivery Truck
39,000
E10-10
Beka Company owns equipment that cost $50,000 when purchased on January 1, 2005. It has been depreciated using the straight-line method based on estimated salvage value of $5,000 and an estimated useful life of 5 years.
Instructions
Prepare Beka Company's journal entries to record the sale of the equipment in these four independent situations.
Sold for $28,000 on January 1, 2008. (List multiple debit/credit entries in descending order of amount.)
Description
Debit
Credit
Accumulated Depreciation
27,000
Cash
28,000
Equipment Account
50,000
Gain on Sale of Equipment
5,000
Sold for $28,000 on May 1, 2008. (List multiple debit/credit entries in descending order of amount.)
Description
Debit
Credit
Depreciation Expense - Equipment
3,000
Accumulated Depreciation - Equipment
3,000
Accumulated Depreciation - Equipment
30,000
Cash
28,000
Equipment Account
50,000
Gain on Sale of Equipment
8,000
Sold for $11,000 on January 1, 2008. (List multiple debit/credit entries in descending order of amount.)
Description
Debit
Credit
Accumulated Depreciation
27,000
Loss on Sale of Equipment
12,000
Cash
11,000
Equipment Account
50,000
Sold for $11,000 on October 1, 2008. (List multiple debit/credit entries in descending order of amount.)
Description
Debit
Credit
Depreciation Expense - Equipment
6,750
Accumulated Depreciation - Equipment
6,750
Accumulated Depreciation - Equipment
33,750
Cash
11,000
Loss on Sale of Equipment
5,250
Equipment Account
50,000
P10-2A
In recent years, Juresic Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus, and various methods were selected.
Bus
Acquired
Cost
Salvage
Value
Useful Life
in Years
Depreciation Method
1
1/1/06
$96,000
$6,000
5
Straight-line
2
1/1/06
120,000
10,000
4
Declining-balance
3
1/1/07
80,000
8,000
5
Units-of-activity
For the declining-balance method, the company uses the double-declining rate. For the units-of activity method, total miles are expected to be 120,000. Actual miles of use in the first 3 years were: 2007, 24,000; 2008, 34,000; and 2009, 30,000.
Compute the amount of accumulated depreciation on each bus at December 31, 2008.
Bus 1
$54,000
Bus 2
$105,000
Bus 3
$34,800
If bus no. 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2006 and (2) 2007
2006
$45,000
2007
$37,500
Copyright 2000-2008 by John Wiley & Sons, Inc. or related companies. All rights reserved. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Younger Bus Lines Research Paper Example | Topics and Well Written Essays - 250 words”, n.d.)
Younger Bus Lines Research Paper Example | Topics and Well Written Essays - 250 words. Retrieved from https://studentshare.org/miscellaneous/1499817-account-paper
(Younger Bus Lines Research Paper Example | Topics and Well Written Essays - 250 Words)
Younger Bus Lines Research Paper Example | Topics and Well Written Essays - 250 Words. https://studentshare.org/miscellaneous/1499817-account-paper.
“Younger Bus Lines Research Paper Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/miscellaneous/1499817-account-paper.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Younger Bus Lines

Bus law

... Topic Introduction Contract of sale is agreement of two parties or entities on the delivery of promise or good in exchange for valuable consideration or payment (Hill & Hill, 2005). There are fundamental elements for consideration in a contract: presence of an offer, acceptance of offer after meeting of minds, delivery of goods or service or a promise to perform, payment or valuable consideration, terms and conditions, actual performance or delivery of goods or services (Hill & Hill, 2005). This document will tackle the issues of a contract of sale of a second hand van between Mr. Graham and Mr.Daly and will attempt to provide an informal legal opinion or advice as remedy to legal issues raised by Mr. Graham, buyer of said second...
10 Pages(2500 words)Case Study

BUS law

... Pat Down Procedure and Standard Arizona v. Johnson was a court case that arose out of the issue of warranted and unwarranted pat downs during traffic stops. The Arizona Court of Appeal held that although the police Officer, Maria Trevizo, had reasonable cause to conduct a frisk on Lemon Johnson, the cause ceased to exist when it emerged that she questioned him on issues unrelated to the traffic violation. However, this decision was later overturned by the Supreme Court which ruled that Trevizo had done the right thing by seizing, questioning and conducting a pat down on Johnson. The court ruling was that it was lawful for Trevizo to have conducted the pat down since she had reasonable suspicion that Johnson was armed... Pat Down Procedure...
1 Pages(250 words)Essay

BUS 101

...Business 101 Summarize how the Federal Reserve regulate the money supply. The Federal Reserve System tries to control or regulate the size of themoney supply by "conducting open market operations in which the Federal Reserve lends or purchases specific types of securities with authorized participants, known as primary dealers such as the United States Treasury. All open market operations in the United States are conducted by the Open Market Desk at the Federal Reserve Bank of New York, with an aim to making the federal funds rate as close to the target rate as possible." When a central bank is "easing", it triggers an increase in money supply by purchasing government securities on the open market thus increasing available funds... 101...
2 Pages(500 words)Essay

BUS law

... BUS Law The Court of Appeals in Arizona passed that the officer did not have the right to conduct the pat down regardless of whether or not she had sufficient reason to frisk the defendant. The court ruled that although the defendant was seized lawfully, the act of questioning him on a matter that was not related to the traffic stop made it wrong for the officer to have carried out the frisking activity. However the Supreme Court disagreed with this decision by the Arizona Court of Appeal. The court ruled that a police officer may conduct a pat down of a passenger who is in a vehicle that is legally stopped for traffic violation, as long as the officer has reason to believe that the passenger is armed and dangerous (Richardson 525...
1 Pages(250 words)Essay

Older parents and younger parents

... of Younger Parents and Older Parents Whether to have children early or late is a problem that haunts couples these days. This is a relatively new question as far as a majority of the people is concerned as it owes a lot to modern methods of contraception. This introduced the option of family planning for people who were earlier constrained by the absence of suitable technology for this purpose. Arguments have been made against having a child while one is younger, mostly geared towards a feminist perspective. These focus on the problems that motherhood poses for the professional lives of the mother who is then consigned to the role of the mother and wife. Arguments for younger parents focus mostly on the biological aspect of motherhood...
4 Pages(1000 words)Essay

BUS 207

...In the highly competitive environment of global business, strategic planning and effective decision-making is vital aspect of competitive advantage. Effective decision-making involves identification and evaluation of various alternatives so as to adopt correct course of action. In workplace, assessing various options help to encourage critical thinking and help look at paradoxes from new perspectives that can give leverage in the market. Everyone makes decisions but to make the right decisions at the right time is the crux of the matter. The six-step decision making process is hugely helpful in recognizing the need for making decision and selecting the best course of action for achieving desired goals (Jones & George, 2010... the highly...
2 Pages(500 words)Essay

Bus 221

..., articles, functionality, and online tools in exchange for recognition via a link to their website. ESPN site uses this way to in line with companies that manufacture sports products that are uses worldwide. Sell exit traffic technique is used in the site by utilizing the clicks by the customers to certain areas or buttons which in turn sends the client to a complimentary website related to the organizations like clubs. This helps in utilization of affiliate codes or arrange of Cost per Acquisition. It may use the Cost per Lead approach for rewarding customers that the destination site was able to convert. ESPN uses Join relevant affiliate programs using small adverts in terms of either competition approach or betting approach that leads...
1 Pages(250 words)Essay

Johanne strauss (younger)

...Johanne Strauss (Younger) Johanne Baptist Strauss is commonly referred to as Johann Strauss, Jr. He is also simply referred to as the son or the Younger by many people as noted by Gartenberg (1972). An Austrian by birth, Strauss the second was born on 25 October 1825 to Johann Strauss the first. His great grandfather was a Jew from Hangary. Although his father never wanted him to become a banker and not a musician, the Younger ended up being a renowned musician. The Younger secretly learnt how to play the violin at a tender age. Franz Amon, one of the violists in his father’s orchestra was very instrumental in his training on how to play the instrument (Gartenberg, 1972). On noticing that the Younger was learning how to play a violin...
5 Pages(1250 words)Research Paper

BUS

...In my working experience in restaurant, the manager tried to apply Quality management. For instance, every day at the settled time we had meetings todiscuss the main results of our work. In addition, we were aware what exactly our manager required from us to provide the high quality of restaurant service. In this context, waiters knew their plan from managers, cookers told the others the dishes that are ready to expire, and managers gave examinations to the newcomers. In my opinion, the very idea of these gatherings was effective. In theory, they enabled direct communication between different ranks within the restaurant hierarchy, the staff was aware of restaurant’s vision, and everyone saw all the achievements and failures... my working...
1 Pages(250 words)Essay

CAN Bus Technology

...CAN Bus Technology This paper is about the CAN bus technology. CAN bus technology is more prevalent nowadays. My aim is to present a technological overview of this technology. I will discuss CAN bus history how It has evolved, the main motive behind its development. Then I will discuss some technical points regarding this technology. Overview of CAN bus: (Kuanming, 1999) Her I will discuss the CAN bus features in a little overview: CAN bus has a line configuration with passive bus coupling There are number of microcontrollers and chips that carry this protocol CAN bus has object oriented messages, that can be broadcasted and multicoated with response check In the CAN bus number of subscribers relies simply on the capability of driver...
6 Pages(1500 words)Case Study

CAN Bus Technologies

As a kind of serial communication bus by means of multi mainframe mode, the central design standard of CAN demands towering velocity and superior capability of contradicting electromagnetism disturb, still demands to make sure any mistakes which are fashioned in communication bus. When the distance of signal communication arrived at 10km, CAN still offer digital communication velocity with 50kbit/s (Kuanming, 2001). The backbone of the Controller Area Network is a prompt serial bus that is deliberate to present a trustworthy, well-organized, and an awfully economical link among sensors and actuators. CAN use a twisted-pair cable to correspond at speeds up to 1 Mbits/sec, with up to 40 devices. CAN was initially developed to make s...
9 Pages(2250 words)Case Study

A Classification on Race Lines

...Critique the Concept of Racialisation Racial formation or racialisation has developed more recently from the original concepts of race and racism in Anthropology and Sociology. The idea of distinguishing human groups by ‘race’ was very much in vogue in the 19th century but has since been ‘discredited since the human species (homo sapiens) could not be genetically thus compartmentalized’ (Jayasinghe, 2008). There is no scientific basis for a classification on race lines. In spite of visible differences broadly identified as Negroid, Mongoloid or Caucasoid, there have never been any biological barriers to their intermingling. Mixed-race metropolitan populations throughout the world today attest to worldwide ‘miscegenation’. However...
8 Pages(2000 words)Case Study

Trelawney Buses - an Economic Overview for the Purpose of Designing and Argument for Government Subsidies for Bus Driver Training

... over pricing and market share (Shim, Siegel and Levine: 204). Having that power will make it impossible for the smaller companies to allocate their funds within their budgets so that the company can be profitable. The larger companies have opportunities for saving money through the concept of volume than will be possible for the smaller companies. Losses have a larger impact on smaller operations as do changes that affect their bottom line. To understand this in reference to the bus company, one might look at the training issue as a cost that is easier for a larger company to absorb than a smaller company. As Trelawney is a larger company that has absorbed several smaller operations, this issue will need to be addressed when discussing...
9 Pages(2250 words)Case Study

Global Shifts and Fault Lines: What is Happening to the Global System in the 21st Century

... Global Shifts and Fault Lines: What is Happening to the Global System in the 21st Century? One day in 1991, the United States and other liberal democracies the world over woke up to realise there was no longer an enemy at the gates. The Soviet Union had collapsed. The pivotal event bid farewell to the bipolar world they were accustomed to and heralded the era of U.S. supremacy. A scant handful of analysts had predicted such a development for the world’s geopolitical status quo, which prompted Eric Hobsbawm (1994) write: ‘The record of forecasters in the past thirty or forty years... has been so spectacularly bad that only governments and economic research institutes still have, or pretend to have, much confidence in it.’ (1994: p.3...
14 Pages(3500 words)Research Paper

Cruise Lines Business Strategies

...Introduction Cruise Lines are companies that operate cruise ships. A cruise ship is a luxury passenger ship that mostly carries holyday makers and tourists. They specialize in high level hospitality and entertainment services on board with an equivalent of a hotel manager in charge of the staff on board. However, since cruise operations are a highly volatile business that suffers dips in passenger bookings that may result difficulties or collapse, most cruise liners also double up as transporters of merchandize (Mancini, 2006, p 4). This sector has been chosen for analysis since it has not been very extensively researched on. This is due to the fact that many commentators on the shipping sector, especially shipping have mainly focused...
16 Pages(4000 words)Research Paper

Along Lines of Process and Emotional Struggle with ADHD in the Family

... Along lines of Process and emotional struggle with ADHD in the Family Attention Deficit/Hyperactivity Disorder (ADHD) Introduction The main function of the brain is to control voluntary and involuntary mechanisms of the body. It is through these mechanisms that one is able to survive with a normal integrative thought process. It is because of the abnormal function of the brain that certain disorders are seen in the human beings. Attention Deficit Hyperactivity Disorder is an example of such a disorder which diminishes the normal functions of the brain. Initially it was thought that ADHD only occurred in adults but it has been found that this condition also affects adults. This essay would revolve around the perspectives...
6 Pages(1500 words)Research Paper

Strengths and Weaknesses of Carnival Cruise Lines

...Carnival cruise lines case study Introduction Carnival Cruise lines is headquartered in Miami, Florida and operates mainly in North America, Germany, United Kingdom, Brazil and Australia. The global cruise industry is estimated to be worth $ 29.34 billion with the North America market accounting for $ 17.46 billion. According to Cruise Market Watch, the cruise industry annual passenger growth rate will remain 7.4 percent until 2015. The growth will be mainly driven by the increase in shorter cruises, construction of more local ports, and new on-shore activities that match customer demands. The industry will attain 21.6 million passengers by 2014. Only 19.8 percent of Americans have enjoyed cruises with the market penetration relatively...
6 Pages(1500 words)Case Study

Marketing Plan for Easy Coach Bus Limited

...Executive summary The introduction of a new product is a hectic yet equally important activity for the profitability objective of any proprietor. This business plan therefore seeks to introduce and market a new company, Easy Coach bus limited. The company that boasts a fleet of long distance buses seeks to access the American market by offering alternative commuter bus services thereby linking various cities and states within the country. The marketing plan therefore outlines various marketing operations that will not only introduce the company in the particular market but also earn the company a substantial share of the market capable of sustaining the operations and earn the company desirable profits. The plan discusses the factors...
6 Pages(1500 words)Case Study

Sustainable Transport: A Comparison of Bus Services and Infrastructure in Glasgow and Edinburg

...An Analytical Comparison of Bus Services and Infrastructure in Glasgow and Edinburgh in Relation to Sustainable Transport Table of Contents Chapter Introduction 3 1.2Rationale for Study 3 1.3Aims and Objectives 4 1.4Structure of the Dissertation 4 Chapter 2: Literature Review 6 2.1 Sustainable Transport in Scotland 6 2.2 Bus Services and Infrastructure in Glasgow and Edinburgh In Relation To Sustainable Transportation 9 Chapter 3: Methodology 14 3.1. Research Approach 14 3.2. Data Collection Procedure 14 3.3 Limitations 15 Timeframe 15 15 References 16 Chapter 1: Introduction 1.1 Indicative Title “An Analytical Comparison of Bus Services and Infrastructure in Glasgow and Edinburgh in Relation to Sustainable Transport...
12 Pages(3000 words)Dissertation

Reflecting on The Experience of The First and Second World Wars The Strategic Significance of Maritime Commerce and Secure Sea Lines of Communication

... of revolutions that the end ensured that the only superpower that was left was the United States. Also, it left a legacy such as the ones that are shown in movies, books, music and other media that portray the time of the cold war. Another element that seemed to mark the cold war was the nuclear war threat between the U.S.S.R and the United States. Most of the Asia Pacific states have an export-oriented structure of economics and depend on mostly maritime commerce and transportation. It means that their income comes from trade through the seas and ocean. It can be seen in the figures below of the world trade. Fig. 1. China’s Critical Sea Lines of Communication
8 Pages(2000 words)Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic Younger Bus Lines for FREE!

Contact Us