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

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 5MC: A machine with a 4-year estimated useful life and an estimated 15% residual value was acquired on...
icon
Related questions
Question
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    
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 4 images

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning