Prior to adjustment at the end of the year, the balance in Trucks is $401,500 and the balance in Accumulated Depreciation-Trucks is $123,400. Details of the subsidiary ledger are as follows:TruckEstimatedResidualNo.CostValueEstimatedUsefulLifeAccumulatedDepreciationat Beginningof YearMilesOperatedDuringYear1$83,000$12,450240,000 miles36,000 miles3119,00099,500100,00014,280410,000$23,80041,00013,93012,000201,000420,00079,60020,00020,10050,400a. 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 twodecimal places.Truck No.Rate per Mile(in cents)1MilesOperated36,000241,000320,100450,400TotalCredit toAccumulatedDepreciationb. Journalize the entry on December 31 to record depreciation for the year. If an amount box does not require an entry, leave it blank.

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Answered: Prior to adjustment at the end of the…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 7PB: Using the following information, A. Make the December 31 adjusting journal entry for depreciation....

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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)…
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 Miles Estimated Estimated Depreciation Operated Truck Residual Useful at Beginning During No. Cost Value Life of Year 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 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. Credit to Rate per Mile Accumulated Truck No. (in cents) Miles Operated Depreciation 1 21,000 $ 2 33,500 3 8,000 4 22,500 Total b. Journalize the entry on…
Prior to adjustment at the end of the year, the balance in Trucks is $300,900 and the balance in Accumulated Depreciation-Trucks is $88,200. Details of the subsidiary ledger are as follows: Truck No. Cost Estimated Residual Value Estimated Useful Accumulated Depreciation at Miles Operated Life (Miles) Beginning of Year During Year 1 $100,000 $13,000 300,000 30,000 2 72,900 9,900 300,000 $60,000 25,000 3 38,000 3,000 200,000 8,050 45,000 4 90,000 13,000 200,000 20,150 40,000 Required: a. Based on the units-of-activity method, 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 rates to three decimal places. Truck No. Rate per Mile Miles Operated Depreciation 1 $ 30,000 2 25,000 3 45,000 4 40,000 Total
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: Estimated Accumulated Depreciation at Miles Operated Truck No. Cost Residual Value Useful Life Beginning of Year During Year 1 $79,610 $14,610 250,000 miles — 20,800 miles 2 57,495 6,070 302,500 miles $14,610 32,100 miles 3 76,060 13,750 201,000 miles 61,380 8,400 miles 4 88,719 22,920 243,700 miles 24,890 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. 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…
Prior to adjustment at the end of the year, the balance in Trucks is $298,443 and the balance in Accumulated Depreciation—Trucks is $100,380. 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 $80,090 $15,220 249,500 miles — 21,300 miles 2 47,144 5,690 296,100 miles $15,040 32,700 miles 3 76,199 13,610 201,900 miles 61,120 8,300 miles 4 95,010 23,220 239,300 miles 24,220 22,800 miles 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 rate per mile answers to the nearest cent. B. Journalize the entry on December 31 to record depreciation for the year.…
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.
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
A company, which makes up its financial statements annually to 31 December,provides for depreciation of its machinery at the rate of 10 per cent per annum on thediminishing balance method. On 31 December 19X6, the machinery consisted ofthree items purchased as under:1. On 1 January 19X4 Machine A Cost N$3 0002. On 1 April 19X5 Machine B Cost N$2 0003. On 1 July 19X6 Machine C Cost N$1 000
Calculate the Total Cost, total, depreciation and annual depreceation for the following assets by using the line method. (Round to Straight nearest Cent) Cost 76,400 1,500 Shipping Charges Annust Total Cost Salunge Value Useful Depreciation Depreistion 4,500 life ↑ years 11
The mid-month convention applies to...
Swifty Industries presents you with the following information.Complete the table for the year ended December 31, 2022. The company depreciates all assets using the half-year convention. (Round answers to 0 decimal places, e.g. 45,892.) Description DatePurchased Cost SalvageValue Lifein Years DepreciationMethod AccumulatedDepreciation to12/31/21 Depreciationfor 2022 Machine A 2/12/20 $146,800 $17,000 10 SYD $34,220 $20060 Machine B 8/15/19 81370 21,630 5 SL 29,870 11948 Machine C 7/21/18 67,200 23,500 8 DDB (A) (B) Machine D (C) 225,570 71,070 5 SYD 72,100 (D)

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