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Prior to adjustment at the end of the year, the balance in Trucks is $301,820 and the balance in Accumulated DepreciationTrucks is $102,720. Details of
Prior to adjustment at the end of the year, the balance in Trucks is $301,820 and the balance in Accumulated DepreciationTrucks is $102,720. 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 | $80,950 | $14,800 | 245,000 miles | 20,200 | |
2 | 59,800 | 5,800 | 300,000 miles | $14,730 | 32,600 |
3 | 75,620 | 13,000 | 202,000 miles | 62,060 | 7,700 |
4 | 85,450 | 22,000 | 235,000 miles | 25,930 | 22,300 |
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 | .27 | 20,200 | 5454 |
2 | .18 | 32,600 | 5868 |
3 | .31 | 7,700 | ? |
4 | .27 | 22,300 | 6021 |
Total | ? |
.31 x 7700 = 2387, but that is not the answer. How do I find it?
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