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: Truck No. Cost Estimated Residual Value Estimated Useful Life Accumulated Depreciation at Beginning of Year Miles Operated During Year 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. Rate per Mile (in cents) Miles Operated Credit to Accumulated Depreciation 1 $fill in the blank f8832d03200dfb6_1 30,000 $fill in the blank f8832d03200dfb6_2 2 $fill in the blank f8832d03200dfb6_3 36,000 $fill in the blank f8832d03200dfb6_4 3 $fill in the blank f8832d03200dfb6_5 21,200 $fill in the blank f8832d03200dfb6_6 4 $fill in the blank f8832d03200dfb6_7 31,200 $fill in the blank f8832d03200dfb6_8 Total
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: Truck No. Cost Estimated Residual Value Estimated Useful Life Accumulated Depreciation at Beginning of Year Miles Operated During Year 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. Rate per Mile (in cents) Miles Operated Credit to Accumulated Depreciation 1 $fill in the blank f8832d03200dfb6_1 30,000 $fill in the blank f8832d03200dfb6_2 2 $fill in the blank f8832d03200dfb6_3 36,000 $fill in the blank f8832d03200dfb6_4 3 $fill in the blank f8832d03200dfb6_5 21,200 $fill in the blank f8832d03200dfb6_6 4 $fill in the blank f8832d03200dfb6_7 31,200 $fill in the blank f8832d03200dfb6_8 Total
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 $408,000 and the balance in
| Truck No. |
Cost | Estimated Residual Value |
Estimated Useful Life |
Accumulated Depreciation at Beginning of Year |
Miles Operated During Year |
|||||
| 1 | $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. |
Rate per Mile (in cents) |
Miles Operated |
Credit to Accumulated Depreciation |
|||
| 1 | $fill in the blank f8832d03200dfb6_1 | 30,000 | $fill in the blank f8832d03200dfb6_2 | |||
| 2 | $fill in the blank f8832d03200dfb6_3 | 36,000 | $fill in the blank f8832d03200dfb6_4 | |||
| 3 | $fill in the blank f8832d03200dfb6_5 | 21,200 | $fill in the blank f8832d03200dfb6_6 | |||
| 4 | $fill in the blank f8832d03200dfb6_7 | 31,200 | $fill in the blank f8832d03200dfb6_8 | |||
| Total | $fill in the blank f8832d03200dfb6_9 |
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