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 accumluated 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 Depreciation Expense-Trucks Accumulated Depreciation-Trucks
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 accumluated 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 Depreciation Expense-Trucks Accumulated Depreciation-Trucks
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Prior to adjustment at the end of the year, the balance in Trucks is $296,900 and the balance in
| Truck No. |
Cost | Estimated Residual Value |
Estimated Useful Life |
Accumulated Depreciation at Beginning of Year |
Miles Operated During 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 | |||||
| 4 | 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.
| Truck No. |
Rate per Mile - in cents |
Miles Operated | Credit to accumluated depreciation |
| 1 | $ | 21,000 | $ |
| 2 | $ | 33,500 | $ |
| 3 | $ | 8,000 | $ |
| 4 | $ | 22,500 | $ |
| TOTAL | ------------------ | ---------------- | $ |
b.
| Dec. 31 | Depreciation Expense-Trucks | ||
| Accumulated Depreciation-Trucks |
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