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Depreciation by Units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $426,700 and the balance in Accumulated Depreciation—Trucks is $132,940. Details of the subsidiary ledger are as follows: Truck No. Cost Estimated Residual Value Estimated Useful Life Accumulated Depreciation at Beginning of Year Miles Operated During Year 1 $77,000   $11,550   200,000 miles —       30,000 miles 2 117,200   14,064   370,000   $23,440       37,000   3 105,000   14,700   202,000   84,000       20,200   4 127,500   15,300   240,000   25,500       28,800   Question Content Area 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. Truck No. Rate per Mile (in cents) Miles Operated Credit to Accumulated Depreciation 1 $fill in the blank 6bd817074feefec_1   30,000   $fill in the blank 6bd817074feefec_2   2 fill in the blank 6bd817074feefec_3   37,000   fill in the blank 6bd817074feefec_4   3 fill in the blank 6bd817074feefec_5   20,200   fill in the blank 6bd817074feefec_6   4 fill in the blank 6bd817074feefec_7   28,800   fill in the blank 6bd817074feefec_8         Total   $fill in the blank 6bd817074feefec_9     Question Content Area 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. blank   - Select - - Select -     - Select - - Select -

Depreciation by Units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $426,700 and the balance in Accumulated Depreciation—Trucks is $132,940. Details of the subsidiary ledger are as follows: Truck No. Cost Estimated Residual Value Estimated Useful Life Accumulated Depreciation at Beginning of Year Miles Operated During Year 1 $77,000   $11,550   200,000 miles —       30,000 miles 2 117,200   14,064   370,000   $23,440       37,000   3 105,000   14,700   202,000   84,000       20,200   4 127,500   15,300   240,000   25,500       28,800   Question Content Area 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. Truck No. Rate per Mile (in cents) Miles Operated Credit to Accumulated Depreciation 1 $fill in the blank 6bd817074feefec_1   30,000   $fill in the blank 6bd817074feefec_2   2 fill in the blank 6bd817074feefec_3   37,000   fill in the blank 6bd817074feefec_4   3 fill in the blank 6bd817074feefec_5   20,200   fill in the blank 6bd817074feefec_6   4 fill in the blank 6bd817074feefec_7   28,800   fill in the blank 6bd817074feefec_8         Total   $fill in the blank 6bd817074feefec_9     Question Content Area 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. blank   - Select - - Select -     - Select - - Select -

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 $426,700 and the balance in Accumulated Depreciation—Trucks is $132,940. Details of the subsidiary ledger are as follows:

Truck
No.		 Cost Estimated
Residual
Value		 Estimated
Useful
Life
 Accumulated
Depreciation
at Beginning
of Year		 Miles
Operated
During
Year
1 $77,000   $11,550   200,000 miles —       30,000 miles
2 117,200   14,064   370,000   $23,440       37,000  
3 105,000   14,700   202,000   84,000       20,200  
4 127,500   15,300   240,000   25,500       28,800  

Question Content Area

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.



Truck No.
Rate per Mile
(in cents)
Miles
Operated		 Credit to
Accumulated
Depreciation
1 $fill in the blank 6bd817074feefec_1   30,000   $fill in the blank 6bd817074feefec_2  
2 fill in the blank 6bd817074feefec_3   37,000   fill in the blank 6bd817074feefec_4  
3 fill in the blank 6bd817074feefec_5   20,200   fill in the blank 6bd817074feefec_6  
4 fill in the blank 6bd817074feefec_7   28,800   fill in the blank 6bd817074feefec_8  
      Total   $fill in the blank 6bd817074feefec_9  
 

Question Content Area

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.

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