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Depreciation by Units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $412,600 and the balance in Accumulated Depreciation-Trucks is $129,220. Details of the subsidiary ledger are as follows: Truck No. 1 2 3 4 Truck No. 1 2 Cost 3 $80,000 118,100 104,500 110,000 Estimated Residual Value $12,000 14,172 14,630 13,200 Estimated Useful Life Rate per Mile (in cents) 220,000 miles 360,000 208,000 400,000 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. Miles Operated 33,000 35,000 20,800 48,000 Accumulated Depreciation at Beginning of Year Total $23,620 83,600 22,000 Miles Operated During Year Credit to Accumulated Depreciation 33,000 miles 36,000 20,800 48,000 h. Journalize the entry on December 31 to record depreciation for the year. If an amount box does not require an entry, leave it blank,

Depreciation by Units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $412,600 and the balance in Accumulated Depreciation-Trucks is $129,220. Details of the subsidiary ledger are as follows: Truck No. 1 2 3 4 Truck No. 1 2 Cost 3 $80,000 118,100 104,500 110,000 Estimated Residual Value $12,000 14,172 14,630 13,200 Estimated Useful Life Rate per Mile (in cents) 220,000 miles 360,000 208,000 400,000 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. Miles Operated 33,000 35,000 20,800 48,000 Accumulated Depreciation at Beginning of Year Total $23,620 83,600 22,000 Miles Operated During Year Credit to Accumulated Depreciation 33,000 miles 36,000 20,800 48,000 h. Journalize the entry on December 31 to record depreciation for the year. If an amount box does not require an entry, leave it blank,

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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Depreciation by Units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $412,600 and the balance in Accumulated Depreciation-Trucks is $129,220. Details of the subsidiary ledger are as follows: Truck No. 1 2 3 4 Truck No. 1 Cost 2 $80,000 118,100 104,500 110,000 Estimated Residual Value $12,000 14,172 14,630 13,200 Estimated Useful Life Rate per Mile (in cents) 220,000 miles 360,000 208,000 400,000 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. Miles Operated 33,000 36,000 20,800 48,000 Accumulated Depreciation at Beginning of Year Total $23,620 83,600 22,000 Miles Operated During Year Credit to Accumulated Depreciation 33,000 miles 36,000 20,800 48,000 h. Journalize the entry on December 31 to record depreciation for the year. If an amount box does not require an entry, leave it blank,
Transcribed Image Text:Depreciation by Units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $412,600 and the balance in Accumulated Depreciation-Trucks is $129,220. Details of the subsidiary ledger are as follows: Truck No. 1 2 3 4 Truck No. 1 Cost 2 $80,000 118,100 104,500 110,000 Estimated Residual Value $12,000 14,172 14,630 13,200 Estimated Useful Life Rate per Mile (in cents) 220,000 miles 360,000 208,000 400,000 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. Miles Operated 33,000 36,000 20,800 48,000 Accumulated Depreciation at Beginning of Year Total $23,620 83,600 22,000 Miles Operated During Year Credit to Accumulated Depreciation 33,000 miles 36,000 20,800 48,000 h. Journalize the entry on December 31 to record depreciation for the year. If an amount box does not require an entry, leave it blank,
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