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: Truck No. Cost Estimated Residual Value Estimated Useful Life Accumulated Depreciation at Beginning of Year Miles Operated During Year 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) Miles Operated Credit to Accumulated Depreciation 1 $fill in the blank d4f9fbfcfff7fd9_1 33,000 $fill in the blank d4f9fbfcfff7fd9_2 2 $fill in the blank d4f9fbfcfff7fd9_3 36,000 $fill in the blank d4f9fbfcfff7fd9_4 3 $fill in the blank d4f9fbfcfff7fd9_5 21,000 $fill in the blank d4f9fbfcfff7fd9_6 4 $fill in the blank d4f9fbfcfff7fd9_7 40,800 $fill in the blank d4f9fbfcfff7fd9_8 Total $fill in the blank d4f9fbfcfff7fd9_9 b. Journalize the entry to record depreciation for the ye

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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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:

Truck No.	Cost	Estimated Residual Value	Estimated Useful Life	Accumulated Depreciation at Beginning of Year	Miles Operated During Year
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)	Miles Operated	Credit to Accumulated Depreciation
1	$fill in the blank d4f9fbfcfff7fd9_1		33,000	$fill in the blank d4f9fbfcfff7fd9_2
2	$fill in the blank d4f9fbfcfff7fd9_3		36,000	$fill in the blank d4f9fbfcfff7fd9_4
3	$fill in the blank d4f9fbfcfff7fd9_5		21,000	$fill in the blank d4f9fbfcfff7fd9_6
4	$fill in the blank d4f9fbfcfff7fd9_7		40,800	$fill in the blank d4f9fbfcfff7fd9_8
			Total	$fill in the blank d4f9fbfcfff7fd9_9

b. Journalize the entry to record depreciation for the year.

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