Prior to adjustment at the end of the year, the balance in Trucks is $298,443 and the balance in Accumulated Depreciation—Trucks is $100,380. Details of the subsidiary ledger are as follows: Estimated Accumulated Depreciation at Miles Operated Truck No. Cost Residual Value Useful Life Beginning of Year During Year 1 $80,090 $15,220 249,500 miles — 21,300 miles 2 47,144 5,690 296,100 miles $15,040 32,700 miles 3 76,199 13,610 201,900 miles 61,120 8,300 miles 4 95,010 23,220 239,300 miles 24,220 22,800 miles 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 rate per mile answers to the nearest cent. B. Journalize the entry on December 31 to record depreciation for the year. Refer to the Chart of Accounts for exact wording of account titles. A. Determine for each truck 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 rate per mile answers to the nearest cent. Truck No. Rate per Mile Miles Operated Credit to Accumulated Depreciation 1 21,300 2 32,700 3 8,300 4 22,800 Total

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 $298,443 and the balance in Accumulated Depreciation—Trucks is $100,380. Details of the subsidiary ledger are as follows:

	Estimated	Accumulated Depreciation at	Miles Operated
Truck No.	Cost	Residual Value	Useful Life	Beginning of Year	During Year
1	$80,090	$15,220	249,500 miles	—	21,300 miles
2	47,144	5,690	296,100 miles	$15,040	32,700 miles
3	76,199	13,610	201,900 miles	61,120	8,300 miles
4	95,010	23,220	239,300 miles	24,220	22,800 miles

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 rate per mile answers to the nearest cent.
B.	Journalize the entry on December 31 to record depreciation for the year. Refer to the Chart of Accounts for exact wording of account titles.

A. Determine for each truck 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 rate per mile answers to the nearest cent.

Truck No.	Rate per Mile	Miles Operated	Credit to Accumulated Depreciation
1		21,300
2		32,700
3		8,300
4		22,800
Total

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