Prior to adjustment at the end of the year, the balance in Trucks is $301,884 and the balance in Accumulated Depreciation-Trucks is $100,880. Details of the subsidiary ledger are as follows: Truck No. 1 2 3 4 Cost $79,610 57,495 76,060 88,719 Residual Value $14,610 6,070 13,750 Estimated 22,920 Useful Life 250,000 miles 302,500 miles 201,000 miles 243,700 miles Accumulated Depreciation at Beginning of Year $14,610 61,380 24,890 Miles Operated During Year 20,800 miles 32,100 miles 8,400 miles 22,800 miles A. Determine the depreciation rates per mile and the amount to be credited to the accumulated depreciation section of each of the subsidiary accounts for the miles operated during the current year. Round the rate per mile to two decimal places and credit to accumulated depreciation to the nearest dollar. B. Journalize the entry on Dec. 31 to record depreciation for the year. Refer to the Chart of Accounts for exact wording of account titles.

Prior to adjustment at the end of the year, the balance in Trucks is $301,884 and the balance in Accumulated Depreciation-Trucks is $100,880. Details of the subsidiary ledger are as follows: Truck No. 1 2 3 4 Cost $79,610 57,495 76,060 88,719 Residual Value $14,610 6,070 13,750 Estimated 22,920 Useful Life 250,000 miles 302,500 miles 201,000 miles 243,700 miles Accumulated Depreciation at Beginning of Year $14,610 61,380 24,890 Miles Operated During Year 20,800 miles 32,100 miles 8,400 miles 22,800 miles A. Determine the depreciation rates per mile and the amount to be credited to the accumulated depreciation section of each of the subsidiary accounts for the miles operated during the current year. Round the rate per mile to two decimal places and credit to accumulated depreciation to the nearest dollar. B. Journalize the entry on Dec. 31 to record depreciation for the year. Refer to the Chart of Accounts for exact wording of account titles.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A truck acquired at a cost of $202,800 has an estimated residual value of $18,000, has an estimated useful life of 440,000 miles, and was driven 113,000 miles during the year. Determine the following. If required, round your answer for the depreciation rate to 2 decimal places. a. The depreciable cost $ b. The depreciation rate $ per mile c. The units-of-activity depreciation for the year $
Depreciation by units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $385,500 and the balance in Accumulated Depreciation—Trucks is $115,400. Details of the subsidiary ledger are as follows: TruckNo. Cost EstimatedResidualValue EstimatedUsefulLife AccumulatedDepreciationat Beginningof Year MilesOperatedDuringYear 1 $78,500 $11,775 240,000 miles — 36,000 miles 2 114,500 13,740 320,000 $22,900 32,000 3 90,000 12,600 213,000 $72,000 21,300 4 102,500 12,300 370,000 $20,500 44,400 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…
On January 1, the records of Tasty Treats Corporation (TTC) showed the following regarding production equipment:Equipment (estimated residual value, $4,000) $16,000Accumulated Depreciation (straight-line, one year) 2,000Required:Based on the data given, compute the estimated useful life of the equipment.
Part a,b both
Prior to adjustment at the end of the year, the balance in Trucks is $437,500 and the balance in Accumulated Depreciation—Trucks is $133,000. Details of the subsidiary ledger are as follows: TruckNo. Cost EstimatedResidualValue EstimatedUsefulLife AccumulatedDepreciationat Beginningof Year MilesOperatedDuringYear 1 $84,500 $12,675 210,000 miles — 31,500 miles 2 119,000 14,280 330,000 miles $23,800 33,000 miles 3 104,000 14,560 219,000 miles 83,200 21,900 miles 4 130,000 15,600 350,000 miles 26,000 42,000 miles 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. Enter all values as positive…
Wolfpack Corp. has determined it should record depreciation expense of $40,000 for the year ending 12/31/X7. Required: In the general journal below, complete the year-end entry to record depreciation. Debit Credit Dec 31 ? 40,000 ? 40,000
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: TruckNo. Cost EstimatedResidualValue EstimatedUsefulLife AccumulatedDepreciationat Beginningof Year MilesOperatedDuringYear 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…
A tractor acquired at a cost of $420,000 has an estimated residual value of $30,000, has an estimated useful life of 25,000 hours, and was operated 1,850 hours during the year.Determine (a) the depreciable cost, (b) the depreciation rate, and (c) the units-of-activity depreciation for the year.
Units-of-activity Depreciation A truck acquired at a cost of $225,000 has an estimated residual value of $14,100, has an estimated useful life of 37,000 miles, and was driven 3,000 miles during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places. (a) The depreciable cost $fill in the blank 1 (b) The depreciation rate $fill in the blank 2 per mile (c) The units-of-activity depreciation for the year $fill in the blank 3
Prior to adjustment at the end of the year, the balance in Trucks is $403,000 and the balance in Accumulated Depreciation—Trucks is $120,400. Details of the subsidiary ledger are as follows: TruckNo. Cost EstimatedResidualValue EstimatedUsefulLife AccumulatedDepreciationat Beginningof Year MilesOperatedDuringYear 1 $84,500 $12,675 220,000 miles — 33,000 miles 2 119,000 14,280 360,000 $23,800 36,000 3 94,500 13,230 210,000 $75,600 21,000 4 105,000 12,600 340,000 $21,000 40,800 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)…
Instructions First Question Prior to adjustment at the end of the year, the balance in Trucks is $305,554 and the balance in Accumulated Depreciation-Trucks is $100,220. Details of the subsidiary ledger are as follows: A. Determine the depreciation rates per mile and the amount to be credited to the accumulated Estimated Accumulated Depreciation at Miles Operated depreciation section of each of the subsidiary accounts for the miles operated during the current year. Truck No. Cost Residual Value Useful Life Beginning of Year During Year Round the rate per mile to two decimal places and credit to accumulated depreciation to the nearest 1 $82,971 $14,850 252,300 miles 20,200 miles dollar. 2 59,412 6,150 295,900 miles $13,950 32,900 miles 76,486 13,990 201,600 miles 61,060 7,700 miles Truck No. Rate per Mile Miles Operated Credit to Accumulated Depreciation 4 86,685 22,830 236,500 miles 25,210 22,100 miles 1 $ 20,200 A. Determine the depreciation rates per mile and the amount to be…
Prior to adjustment at the end of the year, the balance in Trucks is $298,988 and the balance in Accumulated Depreciation—Trucks is $101,200. Details of the subsidiary ledger are as follows: Estimated Accumulated Depreciation at Miles Operated Truck No. Cost Residual Value Useful Life Beginning of Year During Year 1 $85,360 $14,940 251,500 miles — 20,400 miles 2 51,100 6,040 300,400 miles $14,930 32,500 miles 3 76,450 13,830 202,000 miles 61,330 8,100 miles 4 86,078 22,520 235,400 miles 24,940 22,300 miles A. Determine the depreciation rates per mile and the amount to be credited to the accumulated depreciation section of each of the subsidiary accounts for the miles operated during the current year. B. Journalize the entry on Dec. 31 to record depreciation for the year. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS…