Depreciationby units-of-activity Method

Prior to adjustment at the end of the year, the balance in Trucks is $398,600 and the balance in Accumulated DepreciationTrucks is $122,520. Details of the subsidiary ledger are as follows:

Truck

No.CostEstimated

Residual

ValueEstimated

Useful

Life

Accumulated

Depreciation

at Beginning

of YearMiles

Operated

During

Year1$80,000$12,000200,000miles30,000miles2118,10014,172300,000$23,62030,000398,00013,720211,000$78,40021,1004102,50012,300400,000$20,50048,000

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

OperatedCredit to

Accumulated

Depreciation1$30,000$2$30,000$3$21,100$4$48,000$Total$

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