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Accumulated Miles Estimated Estimated Depreciation Operated Truck Residual Useful at Beginning During No. Cost Value Life of Year Year 1 $80,000 $15,000 250,000 miles 21,000 miles 2 54,000 6,000 300,000 $14,400 33,500 3 72,900 10,900 200,000 60,140 8,000 90,000 22,800 240,000 25,200 22,500 Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. ep 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. Credit to Rate per Mile Accumulated Truck No. (in cents) Miles Operated Depreciation 1 21,000 33,500 3 8,000 4 22,500 Total Journalize the entry on December 31 to record depreciation for the year. If an amount box does not require an entry, leave it blank. Dec. 31

Accumulated Miles Estimated Estimated Depreciation Operated Truck Residual Useful at Beginning During No. Cost Value Life of Year Year 1 $80,000 $15,000 250,000 miles 21,000 miles 2 54,000 6,000 300,000 $14,400 33,500 3 72,900 10,900 200,000 60,140 8,000 90,000 22,800 240,000 25,200 22,500 Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. ep 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. Credit to Rate per Mile Accumulated Truck No. (in cents) Miles Operated Depreciation 1 21,000 33,500 3 8,000 4 22,500 Total Journalize the entry on December 31 to record depreciation for the year. If an amount box does not require an entry, leave it blank. Dec. 31

FINANCIAL ACCOUNTING
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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Prior to adjustment at the end of the year, the balance in Trucks is $296,900 and the balance in Accumulated Depreciation--Trucks is $99,740. Details of the subsidiary ledger are as follows: Accumulated Miles Estimated Estimated Depreciation Operated Truck Residual Useful at Beginning During No. Cost Value Life of Year Year 1 $80,000 $15,000 250,000 miles 21,000 miles 2 54,000 6,000 300,000 $14,400 33,500 3 72,900 10,900 200,000 60,140 8,000 90,000 22,800 240,000 25,200 22,500 a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated 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. Credit to Rate per Mile Accumulated Truck No. (in cents) Miles Operated Depreciation 1 21,000 $ 2 33,500 3 8,000 4 22,500 Total b. Journalize the entry on December 31 to record depreciation for the year. If an amount box does not require an entry, leave it blank. Dec. 31
Transcribed Image Text:Prior to adjustment at the end of the year, the balance in Trucks is $296,900 and the balance in Accumulated Depreciation--Trucks is $99,740. Details of the subsidiary ledger are as follows: Accumulated Miles Estimated Estimated Depreciation Operated Truck Residual Useful at Beginning During No. Cost Value Life of Year Year 1 $80,000 $15,000 250,000 miles 21,000 miles 2 54,000 6,000 300,000 $14,400 33,500 3 72,900 10,900 200,000 60,140 8,000 90,000 22,800 240,000 25,200 22,500 a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated 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. Credit to Rate per Mile Accumulated Truck No. (in cents) Miles Operated Depreciation 1 21,000 $ 2 33,500 3 8,000 4 22,500 Total b. Journalize the entry on December 31 to record depreciation for the year. If an amount box does not require an entry, leave it blank. Dec. 31
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