99,50013,930203,000$79,60020,3004127,50015,300320,000$25,50038,400a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section ofeach subsidiary account for the miles operated during the current year, Keep in mind that the depreciation taken cannot reduce thebook value of the truck below Its residual value.Round the rate per mile to two decimal places., Enter all values as positive amounts.Credit toRate per MileMilesAccumulatedTruck No.(in cents)OperatedDepreciation36,00031,00020,30038,400Totalb. Journalize the entry to record depreciation for the year. Depreciation by units-of-activity MethodPrior to adjustment at the end of the year, the balance in Trucks is $424,500 and the balance in Accumulated Depreciation-Trucks is$128,900. Details of the subsidiary ledger are as follows:AccumulatedMilesEstimatedEstimatedDepreciationOperatedTruckResidualUsefulat BeginningDuringNo.CostValueLifeof YearYear$78,500$11,775240,000 miles36,000 miles119,00014,280310,000$23,80031,00099,50013,930203,000$79,60020,300127,50015,300320,000$25,50038,400a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumutated depreciation section ofeach subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce thebook value of the truck below its residual value.Round the rate per mile to two decimal places. Enter all values as positive amounts.Credit toRate per MileMilesAccumulatedTruck No.(in cents)OperatedDepreciation36,00031,000

Units of activity method of Depreciation: Under this method, the asset's cost ( less any salvage…

a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumutated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value, Round the rate per mile to two decimal places. Enter all values as positive amounts.

a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumutated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value, Round the rate per mile to two decimal places. Enter all values as positive amounts.

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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