Prior to adjustment at the end of the year, the balance in Trucks is $296,900 and thebalance in Accumulated Depreciation-Trucks is $99,740. Details of the subsidiary ledgerare as follows:AccumulatedDepreciationat Beginningof YearMilesEstimatedResidualValueEstimatedUsefulLifeOperatedDuringYearTruckNo.Cost$80,000$15,000250,000 miles21,000 miles54,000$14,4006,000300,00033,500200,000372,90010,90060,1408,000240,000490,00022,80025,20022,500a. Determine for each truck the depreciation rate per mile and the amount to be cred-ited to the accumulated depreciation section of each subsidiary account for the milesoperated during the current year.b. Journalize the entry on December 31 to record depreciation for the year.

Unit-of-activity method: Under this method of depreciation, the depreciation expense is calculated…

Answered: Prior to adjustment at the end of the…

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 $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 $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 $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…
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 $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 $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.…
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 $385,500 and the balance in Accumulated Depreciation—Trucks is $115,400. Details of the subsidiary ledger are as follows: TruckNo. Cost EstimatedResidualValue EstimatedUsefulLife AccumulatedDepreciationat Beginningof Year MilesOperatedDuringYear 1 $78,500 $11,775 240,000 miles —     36,000 miles 2 114,500 13,740 320,000 $22,900     32,000 3 90,000 12,600 213,000 $72,000     21,300 4 102,500 12,300 370,000 $20,500     44,400 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. Truck…
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.
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: Accumulated Miles Estimated Estimated Depreciation Operated Truck Residual Useful at Beginning During No. Cost Value Life of Year Year 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 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. Credit to Rate per Mile Accumulated Truck No. (in cents) Miles Operated Depreciation 1 21,000 $ 2 33,500 3 8,000 4 22,500 Total b. Journalize the entry on…
Prior to adjustment at the end of the year, the balance in Trucks is $300,900 and the balance in Accumulated Depreciation-Trucks is $88,200. Details of the subsidiary ledger are as follows: Truck No. Cost Estimated Residual Value Estimated Useful Accumulated Depreciation at Miles Operated Life (Miles) Beginning of Year During Year 1 $100,000 $13,000 300,000 30,000 2 72,900 9,900 300,000 $60,000 25,000 3 38,000 3,000 200,000 8,050 45,000 4 90,000 13,000 200,000 20,150 40,000 Required: a. Based on the units-of-activity method, determine 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. Round rates to three decimal places. Truck No. Rate per Mile Miles Operated Depreciation 1 $ 30,000 2 25,000 3 45,000 4 40,000 Total

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