Prior to adjustment at the end of the year, the balance in Trucks is $297,013 and the balance in Accumulated DepreciationTrucks is $102,180. 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	$80,302	$15,380	249,700 miles		20,300
2	51,225	5,730	303,300 miles	$14,540	32,100
3	79,600	12,940	202,000 miles	62,350	8,100
4	85,886	23,330	240,600 miles	25,290	22,000

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		20,300
2		32,100
3		8,100
4		22,000
Total

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

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1		Adjusting Entries
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