Jack's, a popular pizza hang-out, has a thriving delivery business. Jack's has a fleet of three delivery automobiles. Prior to making the entry for this year's depreciation expense, the subsidiary ledger for the fleet is as follows: Accumulated Estimated Depr.-Beg. Miles Operated Car Cost Salvage Value Life in Miles of the Year During Year 1 $21,000 $3,000 75,000 $2,520 20,000 18,000 2,400 60,000 2,340 22,000 23,500 2,500 70,000 2,000 19,000 3.
Jack's, a popular pizza hang-out, has a thriving delivery business. Jack's has a fleet of three delivery automobiles. Prior to making the entry for this year's depreciation expense, the subsidiary ledger for the fleet is as follows: Accumulated Estimated Depr.-Beg. Miles Operated Car Cost Salvage Value Life in Miles of the Year During Year 1 $21,000 $3,000 75,000 $2,520 20,000 18,000 2,400 60,000 2,340 22,000 23,500 2,500 70,000 2,000 19,000 3.
Jack's, a popular pizza hang-out, has a thriving delivery business. Jack's has a fleet of three delivery automobiles. Prior to making the entry for this year's depreciation expense, the subsidiary ledger for the fleet is as follows: Accumulated Estimated Depr.-Beg. Miles Operated Car Cost Salvage Value Life in Miles of the Year During Year 1 $21,000 $3,000 75,000 $2,520 20,000 18,000 2,400 60,000 2,340 22,000 23,500 2,500 70,000 2,000 19,000 3.
Mileage depreciation. Please see attached data and question
Transcribed Image Text:Jack's, a popular pizza hang-out, has a thriving delivery business. Jack's has a fleet of three delivery
automobiles. Prior to making the entry for this year's depreciation expense, the subsidiary ledger for the
fleet is as follows:
Accumulated
Estimated
Depr.-Beg.
Miles Operated
Salvage Value
Life in Miles
of the Year
During Year
Car
Cost
1.
$21,000
$3,000
75,000
$2,520
20,000
2
18,000
2,400
60,000
2,340
22,000
23,500
2,500
70,000
2,000
19,000
Transcribed Image Text:Instructions
(a) Determine the depreciation rates per mile for each car.
(b) Determine the depreciation expense for each car for the current year.
(c) Make one compound journal entry to record the annual depreciation expense for the fleet.
Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video
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