Depreciation by units-of-activity Method

Prior to adjustment at the end of the year, the balance in Trucks is $404,700 and the balance in Accumulated DepreciationTrucks is $126,740. 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	$81,500		$12,225		240,000	miles			36,000	miles
2	117,200		14,064		240,000		$23,440		24,000
3	103,500		14,490		207,000		$82,800		20,700
4	102,500		12,300		300,000		$20,500		36,000

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. Enter all values as positive amounts.

Truck No.	Rate per Mile (in cents)		Miles Operated		Credit to Accumulated Depreciation
1	$fill in the blank ba3975fd0f99049_1		36,000		$fill in the blank ba3975fd0f99049_2
2	$fill in the blank ba3975fd0f99049_3		24,000		$fill in the blank ba3975fd0f99049_4
3	$fill in the blank ba3975fd0f99049_5		20,700		$fill in the blank ba3975fd0f99049_6
4	$fill in the blank ba3975fd0f99049_7		36,000		$fill in the blank ba3975fd0f99049_8
			Total		$fill in the blank ba3975fd0f99049_9

Question Content Area

b. Journalize the entry to record depreciation for the year.

blank	Accounts PayableAccumulated Depreciation-TrucksCashDepreciation Expense-TrucksTruck ExpenseTrucks	- Select -
	Accounts PayableAccumulated Depreciation-TrucksCashDepreciation Expense-TrucksTruck ExpenseTrucks		- Select -