Prior to adjustment at the end of the year, the balance in Trucks is $296,900 and the balance in Accumulated Depreciation-Trucks is $99,740. Details of the subsidiary ledger are as follows: Accumulated Depreciation at Beginning of Year Miles Estimated Residual Value Estimated Useful Life Operated During Year Truck No. Cost $80,000 $15,000 250,000 miles 21,000 miles 54,000 $14,400 6,000 300,000 33,500 200,000 3 72,900 10,900 60,140 8,000 240,000 4 90,000 22,800 25,200 22,500 a. Determine for each truck the depreciation rate per mile and the amount to be cred- ited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. b. Journalize the entry on December 31 to record depreciation for the year.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Prior to adjustment at the end of the year, the balance in Trucks is $296,900 and the
balance in Accumulated Depreciation-Trucks is $99,740. Details of the subsidiary ledger
are as follows:
Accumulated
Depreciation
at Beginning
of Year
Miles
Estimated
Residual
Value
Estimated
Useful
Life
Operated
During
Year
Truck
No.
Cost
$80,000
$15,000
250,000 miles
21,000 miles
54,000
$14,400
6,000
300,000
33,500
200,000
3
72,900
10,900
60,140
8,000
240,000
4
90,000
22,800
25,200
22,500
a. Determine for each truck the depreciation rate per mile and the amount to be cred-
ited to the accumulated depreciation section of each subsidiary account for the miles
operated during the current year.
b. Journalize the entry on December 31 to record depreciation for the year.
Transcribed Image Text:Prior to adjustment at the end of the year, the balance in Trucks is $296,900 and the balance in Accumulated Depreciation-Trucks is $99,740. Details of the subsidiary ledger are as follows: Accumulated Depreciation at Beginning of Year Miles Estimated Residual Value Estimated Useful Life Operated During Year Truck No. Cost $80,000 $15,000 250,000 miles 21,000 miles 54,000 $14,400 6,000 300,000 33,500 200,000 3 72,900 10,900 60,140 8,000 240,000 4 90,000 22,800 25,200 22,500 a. Determine for each truck the depreciation rate per mile and the amount to be cred- ited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. b. Journalize the entry on December 31 to record depreciation for the year.
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