Prior to adjustment at the end of the year, the balance in Trucks is $405,400 and the balance in Accumulated Depreciation-Trucks is $120,280. Details of the subsidiaryledger are as follows:AccumulatedMilesEstimatedEstimatedDepreciationOperatedTruckResidualUsefulat BeginningDuringNo.CostValueLifeof YearYear1$84,500$12,675210,000 miles31,500 miles2119,90014,388270,000$23,98027,000393,50013,090207,000$74,80020,7004107,50012,900360,000$21,50043,200a. 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 themiles 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.Credit toRate per MileMilesAccumulatedTruck No.(in cents)OperatedDepreciation12$31,500227,0002$20,7004$43,200Total24%24%24 No.CostValueLifeof YearYear$84,500$12,675210,000 miles31,500 miles119,90014,388270,000$23,98027,00093,50013,090207,000$74,80020,7004107,50012,900360,000$21,50043,200a. 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 themiles 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 decimalEnter all values as positiamounts.Credit toRate per MileMilesAccumulatedTruck No.(in cents)OperatedDepreciation12$31,500227,000$4$20,700$443,200$Totalb. Journalize the entry to record depreciation for the year.

Prior to adjustment at the end of the year, the balance in Trucks is $405,400 and the balance in Accumulated Depreciation-Trucks is $120,280. Details of the subsidi ledger are as follows: Accumulated Miles Estimated Estimated Depreciation Operated Truck Residual Useful at Beginning During No. Cost Value Life of Year Year 1 $84,500 $12,675 210,000 miles 31,500 miles 119,900 14,388 270,000 $23,980 27,000 3 93,500 13,090 207,000 $74,800 20,700 4 107,500 12,900 360,000 $21,500 43,200 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

Prior to adjustment at the end of the year, the balance in Trucks is $405,400 and the balance in Accumulated Depreciation-Trucks is $120,280. Details of the subsidi ledger are as follows: Accumulated Miles Estimated Estimated Depreciation Operated Truck Residual Useful at Beginning During No. Cost Value Life of Year Year 1 $84,500 $12,675 210,000 miles 31,500 miles 119,900 14,388 270,000 $23,980 27,000 3 93,500 13,090 207,000 $74,800 20,700 4 107,500 12,900 360,000 $21,500 43,200 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

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 8MC: On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was...

See similar textbooks