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 $ 30,000 $ 2 $ 35,000 $ 3 $ 21,000 $ 4 $ 40,800 $ Total $ b. Journalize the entry to record depreciation for the year.
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 $ 30,000 $ 2 $ 35,000 $ 3 $ 21,000 $ 4 $ 40,800 $ Total $ b. Journalize the entry to record depreciation for the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Prior to adjustment at the end of the year, the balance in Trucks is $407,000 and the balance in
| Truck No. |
Cost | Estimated Residual Value |
Estimated Useful Life |
Accumulated Depreciation at Beginning of Year |
Miles Operated During Year |
|||||
| 1 | $78,500 | $11,775 | 200,000 | miles | — | 30,000 | miles | |||
| 2 | 110,000 | 13,200 | 350,000 | $22,000 | 35,000 | |||||
| 3 | 91,000 | 12,740 | 210,000 | $72,800 | 21,000 | |||||
| 4 | 127,500 | 15,300 | 340,000 | $25,500 | 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 | $ | 30,000 | $ | |||
| 2 | $ | 35,000 | $ | |||
| 3 | $ | 21,000 | $ | |||
| 4 | $ | 40,800 | $ | |||
| Total | $ |
b.
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