Chapter 8 Homework Assignment 2 Question 3, P8-47A (similar to) HW Score: 47.37%, 23.68 of 50 points Points: 3.68 of 10 Save Part 3 of 6 Gleason Freightway provides freight service. The company's balance sheet includes Land, Buildings, and Motor-carrier equipment. Gleason Freightway uses a separate accumulated depreciation account for each depreciable asset. During 2018, Gleason Freightway completed the following transactions: (Click the icon to view transaction data.) Requirement 1. Record the transactions in Gleason Freightway's journal. (Record debits first, then credits. Exclude explanations from all journal entries.) Jul 1 Depreciation expense, building Accumulated depreciation, building Now record the sale of the building. Date Jul 1 Cash Note receivable 6,000 6,000 Journal Entry Accounts Debit Credit 90,000 330,000 C Jan Jul 1 1 Oct 31 Dec 31 Traded in motor-carrier equipment with accumulated depreciation of $85,000 (cost of $150,000) for new equipment with a cash cost of $155,000. Gleason Freightway received a trade-in allowance of $71,000 on the old equipment and paid the remainder in cash. Sold a building that cost $540,000 and had accumulated depreciation of $240,000 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 $60,000. Gleason Freightway received $90,000 cash and a $330,000 note receivable. Purchased land and a building for a cash payment of $600,000. An independent appraisal valued the land at $207,000 and the building at $483,000. Recorded depreciation as follows: New motor-carrier equipment has an expected useful life of 1,300,000 miles and an estimated residual value of $25,000. Depreciation method is the units-of-production method. During the year, Gleason Freightway drove the equipment 150,000 miles. Depreciation on buildings is straight-line. The new building has a 40-year useful life and a residual value equal to $21,600