In recent years, Sonya 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. Information concerning the buses is summarized below.
Bus
Acquired
Cost
Salvage Value
Useful Life in Years
Depreciation Method
1
1/1/10
$  102,200
$  6,600
4
Straight-line
2
1/1/10
194,000
12,100
5
Declining-balance
3
1/1/11
71,018
8,900
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 121,800. Actual miles of use in the first 3 years were: 2011, 26,900; 2012, 32,600 ; and 2013,  31,800 .
(a1)
Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. $0.50.)
Depreciation expense per mile
$
 per mile
Alexia Corporation was organized on January 1, 2012. It is authorized to issue 10,600 shares of 8%, $101 par value preferred stock, and 493,100 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year.
Jan. 10
Issued 81,600 shares of common stock for cash at $4 per share.
Mar. 1
Issued 4,000 shares of preferred stock for cash at $108 per share.
Apr. 1
Issued 22,500 shares of common stock for land. The asking price of the land was $90,500. The fair value of the land was $84,600.
May 1
Issued 82,700 shares of common stock for cash at $6.97 per share.
Aug. 1
Issued 11,600 shares of common stock to attorneys in payment of their bill of $44,400 for services provided in helping the company organize.
Sept. 1
Issued 10,700 shares of common stock for cash at $8 per share.
Nov. 1
Issued 2,520 shares of preferred stock for cash at $110 per share.
(a)
Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do…