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 $23,800 33,000 miles 3 104,000 14,560 219,000 miles 83,200 21,900 miles 4 130,000 15,600 350,000 miles 26,000 42,000 miles Question Content Area a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value. Round the rate per mile to two decimal places. Enter all values as positive amounts. Truck No. Rate per Mile(in cents) Miles Operated Credit toAccumulatedDepreciation 1 fill in the blank 1 of 9$ 31,500 fill in the blank 2 of 9$ 2 fill in the blank 3 of 9 33,000 fill in the blank 4 of 9 3 fill in the blank 5 of 9 21,900 fill in the blank 6 of 9 4 fill in the blank 7 of 9 42,000 fill in the blank 8 of 9 Total fill in the blank 9 of 9$ Feedback Area Feedback Question Content Area b. Journalize the entry to record depreciation for the year. If an amount box does not require an entry, leave it blank. blank Account Debit Credit blank

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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Truck No.	Cost	Estimated Residual Value	Estimated Useful Life	Accumulated Depreciation at Beginning of Year	Miles Operated During Year
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 amounts.

Truck No.	Rate per Mile (in cents)	Miles Operated	Credit to Accumulated Depreciation
1	fill in the blank 1 of 9$	31,500	fill in the blank 2 of 9$
2	fill in the blank 3 of 9	33,000	fill in the blank 4 of 9
3	fill in the blank 5 of 9	21,900	fill in the blank 6 of 9
4	fill in the blank 7 of 9	42,000	fill in the blank 8 of 9
Total			fill in the blank 9 of 9$