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Prior to adjustment at the end of the year, the balance in Trucks is $425,600 and the balance in Accumulated Depreciation-Trucks is $127,620. Details of the subsidiary ledger are as follows: Accumulated Depreciation Miles Operated During Year at Beginning of Year Truck No. 1 2 3 4 1 2 3 Cost Rate per Mile Truck No. (in cents) 4 $80,000 118,100 97,500 130,000 Total Estimated Residual Value 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. 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. $12,000 14,172 13,650 15,600 December 31 Estimated Useful Life 230,000 miles 370,000 miles 203,000 miles 270,000 miles 34,500 37,000 20,300 32,400 Miles Operated $23,620 78,000 26,000 Credit to Accumulated Depreciation. 34,500 miles 37,000 miles 20,300 miles 32,400 miles D. Journalize the entry on December 31 to record depreciation for the year. If an amount box does not require an entry, leave i blank.

Prior to adjustment at the end of the year, the balance in Trucks is $425,600 and the balance in Accumulated Depreciation-Trucks is $127,620. Details of the subsidiary ledger are as follows: Accumulated Depreciation Miles Operated During Year at Beginning of Year Truck No. 1 2 3 4 1 2 3 Cost Rate per Mile Truck No. (in cents) 4 $80,000 118,100 97,500 130,000 Total Estimated Residual Value 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. 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. $12,000 14,172 13,650 15,600 December 31 Estimated Useful Life 230,000 miles 370,000 miles 203,000 miles 270,000 miles 34,500 37,000 20,300 32,400 Miles Operated $23,620 78,000 26,000 Credit to Accumulated Depreciation. 34,500 miles 37,000 miles 20,300 miles 32,400 miles D. Journalize the entry on December 31 to record depreciation for the year. If an amount box does not require an entry, leave i blank.

FINANCIAL ACCOUNTING
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 $425,600 and the balance in Accumulated Depreciation-Trucks is $127,620. Details of the subsidiary ledger are as follows: Accumulated Depreciation at Beginning Miles Operated During Year of Year Truck No. 1 2 3 4 1 2 Rate per Mile Truck No. (in cents) 3 Cost $80,000 118,100 97,500 130,000 4 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. 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. Total Estimated Residual Value $12,000 14,172 13,650 15,600 December 31 Estimated Useful Life 230,000 miles 370,000 miles 203,000 miles 270,000 miles Miles Operated 34,500 37,000 20,300 32,400 $23,620 78,000 26,000 Credit to Accumulated Depreciation 34,500 miles 37,000 miles 20,300 miles 32,400 miles b. Journalize the entry on December 31 to record depreciation for the year. If an amount box does not require an entry, leave it blank..
Transcribed Image Text:Prior to adjustment at the end of the year, the balance in Trucks is $425,600 and the balance in Accumulated Depreciation-Trucks is $127,620. Details of the subsidiary ledger are as follows: Accumulated Depreciation at Beginning Miles Operated During Year of Year Truck No. 1 2 3 4 1 2 Rate per Mile Truck No. (in cents) 3 Cost $80,000 118,100 97,500 130,000 4 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. 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. Total Estimated Residual Value $12,000 14,172 13,650 15,600 December 31 Estimated Useful Life 230,000 miles 370,000 miles 203,000 miles 270,000 miles Miles Operated 34,500 37,000 20,300 32,400 $23,620 78,000 26,000 Credit to Accumulated Depreciation 34,500 miles 37,000 miles 20,300 miles 32,400 miles b. 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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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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