Prior to adjustment at the end of the year, the balance in Trucks is $405,400 and the balance in Accumulated Depreciation-Trucks is $120,280. Details of the subsidiaryledger are as follows:AccumulatedMilesEstimatedEstimatedDepreciationOperatedTruckResidualUsefulat BeginningDuringNo.CostValueLifeof YearYear1$84,500$12,675210,000 miles31,500 miles2119,90014,388270,000$23,98027,000393,50013,090207,000$74,80020,7004107,50012,900360,000$21,50043,200a. 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 themiles 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.Credit toRate per MileMilesAccumulatedTruck No.(in cents)OperatedDepreciation12$31,500227,0002$20,7004$43,200Total24%24%24 No.CostValueLifeof YearYear$84,500$12,675210,000 miles31,500 miles119,90014,388270,000$23,98027,00093,50013,090207,000$74,80020,7004107,50012,900360,000$21,50043,200a. 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 themiles 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 decimalEnter all values as positiamounts.Credit toRate per MileMilesAccumulatedTruck No.(in cents)OperatedDepreciation12$31,500227,000$4$20,700$443,200$Totalb. Journalize the entry to record depreciation for the year.

Prior to adjustment at the end of the year, the balance in Trucks is $405,400 and the balance in Accumulated Depreciation-Trucks is $120,280. Details of the subsidi ledger are as follows: Accumulated Miles Estimated Estimated Depreciation Operated Truck Residual Useful at Beginning During No. Cost Value Life of Year Year 1 $84,500 $12,675 210,000 miles 31,500 miles 119,900 14,388 270,000 $23,980 27,000 3 93,500 13,090 207,000 $74,800 20,700 4 107,500 12,900 360,000 $21,500 43,200 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

Prior to adjustment at the end of the year, the balance in Trucks is $405,400 and the balance in Accumulated Depreciation-Trucks is $120,280. Details of the subsidi ledger are as follows: Accumulated Miles Estimated Estimated Depreciation Operated Truck Residual Useful at Beginning During No. Cost Value Life of Year Year 1 $84,500 $12,675 210,000 miles 31,500 miles 119,900 14,388 270,000 $23,980 27,000 3 93,500 13,090 207,000 $74,800 20,700 4 107,500 12,900 360,000 $21,500 43,200 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

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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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.
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 $ $
Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $151,850 has an estimated useful life of 17 years, has an estimated residual value of $7,350, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year?$fill in the blank f27e84fc8020072_1 Feedback Book value is the initial cost of the fixed asset minus the accumulated depreciation. b. Assume that the equipment was sold on April 1 of the fifth year for $110,335. 1. Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entry, leave it blank. Round your answers to the nearest whole dollar if required. Depreciation Expense-Equipment Depreciation Expense-Equipment Accumulated Depreciation-Equipment Accumulated Depreciation-Equipment Feedback The depreciation account of the fixed asset being…
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)…
Revision of Depreciation A truck with a cost of $123,000 has an estimated residual value of $24,000, has an estimated useful life of 12 years, and is depreciated by the straight-line method. a. Determine the amount of the annual depreciation.$8250 b. Determine the book value at the end of the seventh year of use.$65250 c. Assuming that at the start of the eighth year the remaining life is estimated to be five years and the residual value is estimated to be $15,000, determine the depreciation expense for each of the remaining five years.$