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Question 3 : The Hang - Out, a popular pizza restaurant, has a thriving delivery business. The Hang - Out has a fleet of three
Question : The HangOut, a popular pizza restaurant, has a thriving delivery business. The HangOut has a fleet of three delivery automobiles. Prior to making the entry for this year's amortization expense, the subsidiary ledger for the fleet is as follows:
Instructions
a Determine the amortization rates per kilometre for each car.
b Determine the number of kilometers driven by each car to the beginning of the current year.
c Determine the amortization expense for each car for the current year.
d Make one compound combined journal entry to record the annual amortization expense for the fleet.
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