Prior to adjustment at the end of the year, the balance in Trucks is $301,884 and the balance in Accumulated Depreciation-Trucks is $100,880. Details of the subsidiary ledger are as follows: Truck No. 1 2 3 4 Cost $79,610 57,495 76,060 88,719 Residual Value $14,610 6,070 13,750 Estimated 22,920 Useful Life 250,000 miles 302,500 miles 201,000 miles 243,700 miles Accumulated Depreciation at Beginning of Year $14,610 61,380 24,890 Miles Operated During Year 20,800 miles 32,100 miles 8,400 miles 22,800 miles A. 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 the rate per mile to two decimal places and credit to accumulated depreciation to the nearest dollar. B. Journalize the entry on Dec. 31 to record depreciation for the year. Refer to the Chart of Accounts for exact wording of account titles.

Prior to adjustment at the end of the year, the balance in Trucks is $301,884 and the balance in Accumulated Depreciation-Trucks is $100,880. Details of the subsidiary ledger are as follows: Truck No. 1 2 3 4 Cost $79,610 57,495 76,060 88,719 Residual Value $14,610 6,070 13,750 Estimated 22,920 Useful Life 250,000 miles 302,500 miles 201,000 miles 243,700 miles Accumulated Depreciation at Beginning of Year $14,610 61,380 24,890 Miles Operated During Year 20,800 miles 32,100 miles 8,400 miles 22,800 miles A. 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 the rate per mile to two decimal places and credit to accumulated depreciation to the nearest dollar. B. Journalize the entry on Dec. 31 to record depreciation for the year. Refer to the Chart of Accounts for exact wording of account titles.

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 3RE: Albany Corporation purchased equipment at the beginning of Year 1 for 75,000. The asset does not...

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