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: Truck No. Cost Estimated Residual Value Estimated Useful Life Accumulated Depreciation at Beginning of Year Miles Operated During Year 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. Truck No. Rate per Mile (in cents) Miles Operated Credit to Accumulated Depreciation 1 $fill in the blank 8e4767fcbfe401a_1   34,500   $fill in the blank 8e4767fcbfe401a_2   2 $fill in the blank 8e4767fcbfe401a_3   32,000   $fill in the blank 8e4767fcbfe401a_4   3 $fill in the blank 8e4767fcbfe401a_5   20,000   $fill in the blank 8e4767fcbfe401a_6   4 $fill in the blank 8e4767fcbfe401a_7   42,000   $fill in the blank 8e4767fcbfe401a_8         Total   $fill in the blank 8e4767fcbfe401a_9   b.  Journalize the entry to record depreciation for the year.     fill in the blank b4a82ffebff305f_2         fill in the blank b4a82ffebff305f_4

Survey of Accounting (Accounting I)
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ISBN:9781305961883
Author:Carl Warren
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Chapter7: Fixed Assets, Natural Resources, And Intangible Assets
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Problem 7.3.1MBA
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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:

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



Truck No.

Rate per Mile
(in cents)

Miles
Operated
Credit to
Accumulated
Depreciation
1 $fill in the blank 8e4767fcbfe401a_1   34,500   $fill in the blank 8e4767fcbfe401a_2  
2 $fill in the blank 8e4767fcbfe401a_3   32,000   $fill in the blank 8e4767fcbfe401a_4  
3 $fill in the blank 8e4767fcbfe401a_5   20,000   $fill in the blank 8e4767fcbfe401a_6  
4 $fill in the blank 8e4767fcbfe401a_7   42,000   $fill in the blank 8e4767fcbfe401a_8  
      Total   $fill in the blank 8e4767fcbfe401a_9  

b.  Journalize the entry to record depreciation for the year.

    fill in the blank b4a82ffebff305f_2  
      fill in the blank b4a82ffebff305f_4
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