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…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.
Equipment acquired at a cost of $104,000 has an estimated residual value of $6,000 and an estimated useful life of 10 years. It was placed in service on October 1 of the current fiscal year, which ends on December 31. If necessary, round your answers to the nearest cent. a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method. Year 1 Year 2 Year 1 Depreciation Year 2 $ b. Determine the depreciation for the current fiscal year and for the following fiscal year by the double-declining-balance method. $ Depreciation $ $
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…
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…
Equipment with a cost of $143,431 has an estimated residual value of $8,131 and an estimated life of 6 years or 12,405 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,454 hours? b. $6.00 c. $22,550.00 d. $37,672.41
Units-of-activity Depreciation A truck acquired at a cost of $250,000 has an estimated residual value of $15,500, has an estimated useful life of 35,000 miles, and was driven 3,200 miles during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places. (a) The depreciable cost (b) The depreciation rate %24 per mile (c) The units-of-activity depreciation for the year
A building acquired at the beginning of the year at a cost of $112,000 has an estimated residual value of $7,800 and an estimated useful life of four years. Determine the following. (a) The double-declining-balance rate (b) the double declining-balance depreciation for the first year

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