Depreciation by Units-of-Output Method

Prior to adjustment at the end of the year, the balance in Trucks is $327,000 and the balance in Accumulated DepreciationTrucks is $37,958. Details of the subsidiary ledger are as follows:

Truck No.	Cost	Estimated Residual Value	Estimated Useful Life (in miles)	Accumulated Depreciation at Beginning of Year	Miles Operated During Year
1	$65,200	8,500	210,000	-	32,000
2	91,800	12,000	420,000	$758	34,000
3	48,800	4,000	280,000	10,300	50,000
4	121,200	17,600	280,000	26,900	56,000

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. Round the rate per mile to two decimal places and credit to accumulated depreciation to the nearest dollar.

Truck No.	Rate per Mile (in cents)				Miles Operated	Credit to Accumulated Depreciation
1	$				32,000	$
2					34,000
3					50,000
4					56,000
Total						$

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b. Journalize the entry to record depreciation for the year.

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