Depreciation by Units-of-activity Method

Prior to adjustment at the end of the year, the balance in Trucks is $398,400 and the balance in Accumulated DepreciationTrucks is $118,580. Details of the subsidiary ledger are as follows:

Truck No.	Cost		Estimated Residual Value		Estimated Useful Life		Accumulated Depreciation at Beginning of Year		Miles Operated During Year
1	$83,000		$12,450		200,000	miles			30,000	miles
2	115,400		13,848		260,000		$23,080		26,000
3	92,500		12,950		213,000		74,000		21,300
4	107,500		12,900		300,000		21,500		36,000

Question Content Area

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 the rate per mile to two decimal places.

Truck No.	Rate per Mile (in cents)		Miles Operated		Credit to Accumulated Depreciation
1	$fill in the blank 9c3a2ffeefe607c_1		30,000		$fill in the blank 9c3a2ffeefe607c_2
2	fill in the blank 9c3a2ffeefe607c_3		26,000		fill in the blank 9c3a2ffeefe607c_4
3	fill in the blank 9c3a2ffeefe607c_5		21,300		fill in the blank 9c3a2ffeefe607c_6
4	fill in the blank 9c3a2ffeefe607c_7		36,000		fill in the blank 9c3a2ffeefe607c_8
			Total		$fill in the blank 9c3a2ffeefe607c_9

Question Content Area

b. Journalize the entry on December 31 to record depreciation for the year. If an amount box does not require an entry, leave it blank.

blank	Accumulated Depreciation-TrucksCashDepreciation Expense-TrucksTruck ExpenseTrucks	- Select -	- Select -
	Accumulated Depreciation-TrucksCashDepreciation Expense-TrucksTruck ExpenseTrucks	- Select -	- Select -