Depreciation by Units-of-activity Method

Prior to adjustment at the end of the year, the balance in Trucks is $422,000 and the balance in Accumulated DepreciationTrucks is $129,300. 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	$77,000		$11,550		200,000	miles			30,000	miles
2	114,500		13,740		380,000		$22,900		38,000
3	100,500		14,070		204,000		80,400		20,400
4	130,000		15,600		320,000		26,000		38,400

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 87171907402b073_1		30,000		$fill in the blank 87171907402b073_2
2	fill in the blank 87171907402b073_3		38,000		fill in the blank 87171907402b073_4
3	fill in the blank 87171907402b073_5		20,400		fill in the blank 87171907402b073_6
4	fill in the blank 87171907402b073_7		38,400		fill in the blank 87171907402b073_8
			Total		fill in the blank

Question Content Area

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.