Depreciation by Units-of-activity Method

Prior to adjustment at the end of the year, the balance in Trucks is $394,700 and the balance in Accumulated DepreciationTrucks is $121,140. 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	$80,000		$12,000		240,000	miles			36,000	miles
2	112,700		13,524		300,000		$22,540		30,000
3	97,000		13,580		204,000		77,600		20,400
4	105,000		12,600		240,000		21,000		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 Mile (in cents)		Miles Operated		Credit to Accumulated Depreciation
1	$fill in the blank e81aa1fa9042040_1		36,000
2	fill in the blank e81aa1fa9042040_3		30,000
3	fill in the blank e81aa1fa9042040_5		20,400
4	fill in the blank e81aa1fa9042040_7		28,800
			Total

b. Journalize the entry on December 31 to record depreciation for the year. If an amount box does not require an entry, leave it blank.

blank	Accumulated Depreciation-TrucksCashDepreciation Expense-TrucksTruck ExpenseTrucks	- Select -	- Select -
	Accumulated Depreciation-TrucksCashDepreciation Expense-TrucksTruck ExpenseTrucks	- Select -	- Select -