Determine the depreciation rates per mile

Assignment Help Financial Accounting

Reference no: EM13177155

Question 1

Prior to adjustment at the end of the year, the balance in trucks is $225,900 and the balance is accumulated depreciation- trucks is $87,010. Details of the subsidiary ledger are as follows:

truck No	cost	estimated residual value	estimated useful life	estimated depreciation at beginning of year	Miles operated during year
1	75,000	12,000	150,000 mile	19,110	36,000 miles
2	72,900	9,900	300,000	59,850	18,000
3	38,000	3,000	200,000	8,050	36,000
4	40,000	4,000	120,000		16,000

(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 mile operated during the current year.

(B) Journalize the entry to record depreciation for the year.

Question 2

A storage tank acquired at the beginning of the fiscal year at a cost of $86,000 has an estimated residual value of $10,000 and an estimated useful life of eight years. Determine the following: (A) the amount of annual depreciation by the straight-line method and (B) the amount of depreciation for the first and second year computed by the double-declining-balance method.

Question 3

Equipment acquired on January 3, 2005, at a cost of $147,500, has an estimated useful life of eight years and an estimated residual value of $ 17,500.

(A)What was the annual amount of depreciation for the years 2005, 2006, and 2007, using the straight-line method of depreciation?

(B) What was the book value of the equipment of January 1, 2008?

Assuming that the equipment was sold on January 2, 2008, for $95,000, journalize the entry to record the sale.

(D) Assuming that the equipment had been sold on January 2, 2008, for $100,000 instead of $95,000, journalize the entry to record the sale.

Question 4

Air Pack Company purchased packaging equipment on January 3, 2006, for $90,000. The equipment was expected to have a useful life of three years, or 21,000 operating hours, and a residual value of $6,000. The equipment was used for 8,000 hours during 2006, 7,500 hours in 2007, and 5,500 hours in 2008.

Instructions

Determine the amount of depreciation expense for the years ended December 31, 2006, 2007 and 2008, by (A) the straight-line method (B) the units-of-production method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the three years by each method. The following columnar headings are suggested for recording the depreciation expense amounts

Reference no: EM13177155

Questions Cloud

Define genotypes phenotypes number : Indicate with arrows the classes above that would not be produced if A and B were completely linked.

How the real output changes : Suppose that Glitter Gulch, a gold mining firm, increased its sales revenues on newly mined gold from $10 million to $20 million between one year and the next.

What is the pressure in the flask : The lid is tightly sealed on a rigid flask containing 3.50 L H2 at 17 °C and 0.913 atm. If the flask is heated to 71 °C, what is the pressure in the flask?

Calculate the ph of the final solution after the indicated : For each of the following three questions 25.0 mL of 0.100 M pyridine (Kb = 1.70 x 10-9) is titrated with 0.100 M HCl. For each question calculate the pH of the final solution after the indicated amount of HCl has been added. That is, treat each q..

Determine the depreciation rates per mile : 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 mile operated during the current year.

State and make a map of genes showing gene order : Make a map of these genes showing gene order and distances between genes. SHOW ALL WORK to get credit!! Use addition paper if needed.

Why a country that generally disregards the use of markets : suppose a person defects from cuba (a country that generally disregards the use of markets) to the united states and asks to see a market in action. when would you take her? did you give her a complete showing of this market?

What is the values of the demand elasticities : Using calculus, show that the demand and supply curve have constant elasticity along their entire length. What are the values of the demand and supply elasticities?

Write a personal reflection journal : Write a personal reflection journal on the recorded Employability / Career Development Toowoomba campus presentation provided on the ACC1101 course homepage.

User Account

All Pages