99,50013,930203,000$79,60020,3004127,50015,300320,000$25,50038,400a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section ofeach subsidiary account for the miles operated during the current year, Keep in mind that the depreciation taken cannot reduce thebook 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)OperatedDepreciation36,00031,00020,30038,400Totalb. Journalize the entry to record depreciation for the year. Depreciation by units-of-activity MethodPrior to adjustment at the end of the year, the balance in Trucks is $424,500 and the balance in Accumulated Depreciation-Trucks is$128,900. Details of the subsidiary ledger are as follows:AccumulatedMilesEstimatedEstimatedDepreciationOperatedTruckResidualUsefulat BeginningDuringNo.CostValueLifeof YearYear$78,500$11,775240,000 miles36,000 miles119,00014,280310,000$23,80031,00099,50013,930203,000$79,60020,300127,50015,300320,000$25,50038,400a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumutated depreciation section ofeach subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce thebook 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)OperatedDepreciation36,00031,000

Units of activity method of Depreciation: Under this method, the asset's cost ( less any salvage…

a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumutated 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.

a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumutated 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.

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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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…
Depreciation by units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $404,300 and the balance in Accumulated Depreciation—Trucks is $118,560. Details of the subsidiary ledger are as follows: TruckNo. Cost EstimatedResidualValue EstimatedUsefulLife AccumulatedDepreciationat Beginningof Year MilesOperatedDuringYear 1 $84,500 $12,675 230,000 miles —     34,500 miles 2 116,300 13,956 320,000 $23,260     32,000 3 91,000 12,740 200,000 $72,800     20,000 4 112,500 13,500 350,000 $22,500     42,000 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.…
Depreciation by Units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $296,900 and the balance in Accumulated Depreciation—Trucks is $99,740. Details of the subsidiary ledger are as follows: TruckNo. Cost EstimatedResidualValue EstimatedUsefulLife AccumulatedDepreciationat Beginningof Year MilesOperatedDuringYear 1 $80,000 $15,000 250,000 miles —     21,000 miles 2 54,000 6,000 300,000 $14,400     33,500 3 72,900 10,900 200,000 60,140     8,000 4 90,000 22,800 240,000 25,200     22,500 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 Mile - in cents Miles Operated…
Depreciation by units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $408,000 and the balance in Accumulated Depreciation—Trucks is $126,200. Details of the subsidiary ledger are as follows: TruckNo. Cost EstimatedResidualValue EstimatedUsefulLife AccumulatedDepreciationat Beginningof Year MilesOperatedDuringYear 1 $86,000 $12,900 200,000 miles —     30,000 miles 2 119,000 14,280 360,000 $23,800     36,000 3 103,000 14,420 212,000 $82,400     21,200 4 100,000 12,000 260,000 $20,000     31,200 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 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.…
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Prior to adjustment at the end of the year, the balance in Trucks is $407,000 and the balance in Accumulated Depreciation—Trucks is $120,300. Details of the subsidiary ledger are as follows: TruckNo. Cost EstimatedResidualValue EstimatedUsefulLife AccumulatedDepreciationat Beginningof Year MilesOperatedDuringYear 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)…
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)…
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…
Depreciation by units-of-activity method Prior to adjustment at the end of the year, the balance in Trucks is $415,000 and the balance in Accumulated Depreciation-Trucks is $124,000. Details of the subsidiary ledger are as follows: Truck No. 1 2 3 4 Truck No. 1 2 3 Total Cost Feedback $77,000 119,000 94,000 125,000 Estimated Residual Value $11,550 14,280 13,160 15,000 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. 0.28 0.26 ✔ 0.37 ✔ Estimated Useful Life Rate per Mile (in cents) Miles Operated 0.28 ✓ 230,000 miles 400,000 miles 220,000 miles 390,000 miles 34,500 40,000 22,000 46,800 Accumulated Depreciation at Beginning of Year $23,800…
Depreciation by units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $420,400 and the balance in Accumulated Depreciation-Trucks is $125,980. Details of the subsidiary ledger are as follows: Accumulated Depreciation at Beginning Miles Operated During Year of Year Truck No. 1 2 3 4 Truck No. 1 Cost $83,000 119,900 97,500 120,000 2 3 Estimated Residual Value $12,450 4 14,388 13,650 14,400 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. Credit to Accumulated Depreciation Rate per Mile (in cents) Estimated Useful Life $ 230,000 miles 240,000 216,000 320,000 $ Miles Operated 34,500 24,000 21,600 38,400…
rior to adjustment at the end of the year, the balance in Trucks is $423,500 and the balance in Accumulated Depreciation-Trucks is $127,800. Details of the subsidiary ledger are as follows: Accumulated Miles Estimated Estimated Depreclation at Beginning Operated During Truck Residual Useful No. Cost Value Life of Year Year $86,000 $12,900 220,000 miles 33,000 miles 21 114,500 13,740 240,000 $22,900 24,000 3 100,500 14,070 216,000 80,400 21,600 4 122,500 14,700 410,000 24,500 49,200 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 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. Credit to Rate per Mile Miles Accumulated Truck No. (In cents) Operated Depreclation 1. S. 33,000 2. 24,000 21,600 4. 49,200 Total S. 3.