Depreciation by units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $408,000 and the balance in Accumulated Depreciation—Trucks is $126,200. 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 $86,000 $12,900 200,000 miles — 30,000 miles 2 119,000 14,280 360,000 $23,800 36,000 3 103,000 14,420 212,000 $82,400 21,200 4 100,000 12,000 260,000 $20,000 31,200 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. Enter all values as positive amounts. Truck No. Rate per Mile (in cents) Miles Operated Credit to Accumulated Depreciation 1 $fill in the blank f8832d03200dfb6_1 30,000 $fill in the blank f8832d03200dfb6_2 2 $fill in the blank f8832d03200dfb6_3 36,000 $fill in the blank f8832d03200dfb6_4 3 $fill in the blank f8832d03200dfb6_5 21,200 $fill in the blank f8832d03200dfb6_6 4 $fill in the blank f8832d03200dfb6_7 31,200 $fill in the blank f8832d03200dfb6_8 Total

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 $408,000 and the balance in Accumulated Depreciation—Trucks is $126,200. 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	$86,000		$12,900		200,000	miles	—	30,000	miles
2	119,000		14,280		360,000		$23,800	36,000
3	103,000		14,420		212,000		$82,400	21,200
4	100,000		12,000		260,000		$20,000	31,200

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. Enter all values as positive amounts.

Truck No.	Rate per Mile (in cents)	Miles Operated	Credit to Accumulated Depreciation
1	$fill in the blank f8832d03200dfb6_1		30,000	$fill in the blank f8832d03200dfb6_2
2	$fill in the blank f8832d03200dfb6_3		36,000	$fill in the blank f8832d03200dfb6_4
3	$fill in the blank f8832d03200dfb6_5		21,200	$fill in the blank f8832d03200dfb6_6
4	$fill in the blank f8832d03200dfb6_7		31,200	$fill in the blank f8832d03200dfb6_8
			Total	$fill in the blank f8832d03200dfb6_9

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