Prior to adjustment at the end of the year, the balance in Trucks is $301,504 and the balance in Accumulated DepreciationTrucks is $102,930 Details of the subsidiary ledger are as follows Estimated Accumulated Depreciation at Miles Operated Truck No Cost Residual Value Useful Life Beginning of Year During Year 1 $85,650 $15,370 251,000 miles 20,200 miles 2 53,932 5,660 301,700 miles $13,760 32,100 miles 3 77,176 12,600 201,800 miles 62,800 7,700 miles 4 84,746 23,490 235,600 miles 26,370 22,900 miles 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 rate per mile answers to the nearest cent B Journalize the entry on December 31 to record depreciation for the year Refer to the Chart of Accounts for exact wording of account titles none X Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 114 Interest Receivable 115 Notes Receivable 116 Merchandise Inventory 117 Supplies 119 Prepaid Insurance 120 Land 123 Trucks 124 Accumulated Depreciation Trucks 125 Equipment 126 Accumulated Depreciation Equipment 130 Mineral Rights 131 Accumulated Depletion 132 Goodwill 133 Patents LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary REVENUE 410 Sales 610 Interest Revenue 620 Gain on Sale of Trucks 621 Gain on Sale of Equipment EXPENSES 510 Cost of Merchandise Sold 520 Salaries Expense 521 Advertising Expense 522 Depreciation Expense Trucks 523 Delivery Expense 524 Repairs and Maintenance Expense 529 Selling Expenses 531 Rent Expense 532 Depreciation Expense Equipment 533 Depletion Expense 534 Amortization Expense Patents 535 Insurance Expense 536 Supplies Expense 539 Miscellaneous Expense 710 Interest Expense 720 Loss on Sale of Trucks 721 Loss on Sale of Equipment none X First Question A Determine for each truck the depreciation rates per mile and the amount to be credited to the accumulated depreciation section of each of the subsidiary accounts 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 rate per mile answers to the nearest cent Truck No Rate per Mile Miles Operated Credit to Accumulated Depreciation 1 20,200 2 32,100 3 7,700 4 22,900 Total Points Feedback Check My Work Explanation none X Journal B Journalize the entry on Dec 31 to record depreciation for the year Refer to the Chart of Accounts for exact wording of account titles PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Adjusting Entries 2 3 Solution DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Adjusting Entries 2 3

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Prior to adjustment at the end of the year, the balance in Trucks is $301,504 and the balance in Accumulated DepreciationTrucks is $102,930. Details of

Prior to adjustment at the end of the year, the balance in Trucks is $301,504 and the balance in Accumulated DepreciationTrucks is $102,930. Details of the subsidiary ledger are as follows:

		Estimated		Accumulated Depreciation at	Miles Operated
Truck No.	Cost	Residual Value	Useful Life	Beginning of Year	During Year
1	$85,650	$15,370	251,000 miles		20,200 miles
2	53,932	5,660	301,700 miles	$13,760	32,100 miles
3	77,176	12,600	201,800 miles	62,800	7,700 miles
4	84,746	23,490	235,600 miles	26,370	22,900 miles

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 rate per mile answers to the nearest cent.
B.	Journalize the entry on December 31 to record depreciation for the year. Refer to the Chart of Accounts for exact wording of account titles.

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Chart of Accounts

CHART OF ACCOUNTS

General Ledger

	ASSETS
110	Cash
111	Petty Cash
112	Accounts Receivable
114	Interest Receivable
115	Notes Receivable
116	Merchandise Inventory
117	Supplies
119	Prepaid Insurance
120	Land
123	Trucks
124	Accumulated Depreciation-Trucks
125	Equipment
126	Accumulated Depreciation-Equipment
130	Mineral Rights
131	Accumulated Depletion
132	Goodwill
133	Patents

	LIABILITIES
210	Accounts Payable
211	Salaries Payable
213	Sales Tax Payable
214	Interest Payable
215	Notes Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends
313	Income Summary

	REVENUE
410	Sales
610	Interest Revenue
620	Gain on Sale of Trucks
621	Gain on Sale of Equipment

	EXPENSES
510	Cost of Merchandise Sold
520	Salaries Expense
521	Advertising Expense
522	Depreciation Expense-Trucks
523	Delivery Expense
524	Repairs and Maintenance Expense
529	Selling Expenses
531	Rent Expense
532	Depreciation Expense-Equipment
533	Depletion Expense
534	Amortization Expense-Patents
535	Insurance Expense
536	Supplies Expense
539	Miscellaneous Expense
710	Interest Expense
720	Loss on Sale of Trucks
721	Loss on Sale of Equipment

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First Question

A. Determine for each truck the depreciation rates per mile and the amount to be credited to the accumulated depreciation section of each of the subsidiary accounts 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 rate per mile answers to the nearest cent.