Prior to adjustment at the end of the year, the balance in Trucks is $315,470 and the balance in Accumulated DepreciationTrucks is $101,720. 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	$83,800	$15,200	245,000 miles		21,800
2	57,850	6,000	305,000 miles	$13,990	34,300
3	77,320	13,000	201,000 miles	62,120	7,700
4	96,500	23,000	245,000 miles	25,610	22,200

Required:

A.

Determine 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.

B.

Journalize the entry to record depreciation for the year. Refer to the Chart of Accounts for exact wording of account titles.

A. Determine 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.

Truck No.

Rate per Mile

Miles Operated

Credit to Accumulated Depreciation

1

21,800

2

34,300

3

7,700

4

22,200

Total

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1		Adjusting Entries
2
3