InstructionsFirst QuestionPrior to adjustment at the end of the year, the balance in Trucks is $305,554 and the balance in Accumulated Depreciation-Trucks is $100,220. Details of thesubsidiary ledger are as follows:A. Determine the depreciation rates per mile and the amount to be credited to the accumulatedEstimatedAccumulated Depreciation atMiles Operateddepreciation section of each of the subsidiary accounts for the miles operated during the current year.Truck No.CostResidual ValueUseful LifeBeginning of YearDuring YearRound the rate per mile to two decimal places and credit to accumulated depreciation to the nearest1$82,971$14,850252,300 miles20,200 milesdollar.259,4126,150295,900 miles$13,95032,900 miles76,48613,990201,600 miles61,0607,700 milesTruck No.Rate per MileMiles Operated Credit to Accumulated Depreciation486,68522,830236,500 miles25,21022,100 miles1$20,200A. Determine the depreciation rates per mile and the amount to be credited to the accumulated depreciation section of each of the subsidiary232,900accounts for the miles operated during the current year. Round the rate per mile to two decimal places and credit to accumulated depreciation37,700to the nearest dollar.422,100B. Journalize the entry on Dec. 31 to record depreciation for the year. Refer to the Chart of Accounts for exact wording of account titles.TotalB. Journalize the entry on Dec. 31 to record depreciation for the year. Refer to the Chart of Accounts for exact wording of account titles.PAGE 1JOURNALACCOUNTING FOUATIONDATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITYAdjusting Entries12324

Solution Concept When the asset is depreciated using the capacity of miles to be driven , Formula to…

1 $82,971 $14,850 252,300 miles 20,200 miles dollar. 59,412 6,150 295,900 miles $13,950 32,900 miles 3 76,486 13,990 201,600 miles 61,060 7,700 miles Truck No. Ra 4 86,685 22,830 236,500 miles 25,210 22,100 miles %24 A. Determine the deprociation rates per mile and the amount to be creited to the accumulated depreciation section of each of the subsidiary 2 accounts for the miles operated during the current year. Round the rate per mile to two decimal places and credit to accumulated depreciation 3 to the nearest dollar. 4 B. Journalize the entry on Dec. 31 to record depreciation for the year. Refer to the Chart of Accounts for exact wording of account titles. Total B. Journalize the entry on Dec. 31 to record depreciation for the year. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL ACCOUNTING. FOUATION FOUITY DATE DESCRIRTION ROST REE DEBIT CREDIT ASSETS LIABILITIES

1 $82,971 $14,850 252,300 miles 20,200 miles dollar. 59,412 6,150 295,900 miles $13,950 32,900 miles 3 76,486 13,990 201,600 miles 61,060 7,700 miles Truck No. Ra 4 86,685 22,830 236,500 miles 25,210 22,100 miles %24 A. Determine the deprociation rates per mile and the amount to be creited to the accumulated depreciation section of each of the subsidiary 2 accounts for the miles operated during the current year. Round the rate per mile to two decimal places and credit to accumulated depreciation 3 to the nearest dollar. 4 B. Journalize the entry on Dec. 31 to record depreciation for the year. Refer to the Chart of Accounts for exact wording of account titles. Total B. Journalize the entry on Dec. 31 to record depreciation for the year. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL ACCOUNTING. FOUATION FOUITY DATE DESCRIRTION ROST REE DEBIT CREDIT ASSETS LIABILITIES

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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