Determine the depreciation rates per mile

Assignment Help Financial Accounting

Reference no: EM13967592

Prior to adjustment at the end of the year, the balance in Trucks is $275,900 and the balance in Accumulated Depreciation-Trucks is $91,350. Details of the subsidiary ledger are as follows:

Truck #, Cost, Est. Residual Value, Estimated Useful Life, Accum. Dep. @ Beg of Year, Miles Operated During Year

1. 78,000, 15,000, 200,000 miles, -------- 19,500 miles
2. 38,000, 3,000, 200,000 miles, 8,050, 36,000 miles
3. 72,900, 9,900, 300,000 miles, 60,900, 25,000 miles
4. 90,000, 20,000 , 250,000 miles , 22,400, 26,000 miles

a. Using the units-of-production method, 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. If required, round your answer to the nearest cent.

Truck #, Rate per mile (in cents), Miles Operated , Credit to Accumulated Depreciation

1 .3, 19,500, 5,850

2 .175, 36,000, 6,300

3. 21, 25,000, 2100

4. 28, 26,000, 7,280

TOTAL= 21530

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

Reference no: EM13967592

Questions Cloud

Please provide a detailed outline and introduction paragraph : Please provide a detailed outline and introduction paragraph for the following topic, please include any references found in research (APA):

Consider the following model for the latte market : Consider the following model for the Latte market. Suppose the aggregate demand for Lattes is given by Qd = 5 - P where P denotes the price and Q denotes the quantity of Latte in terms of thousands of Latte demanded. The aggregate supply for Lattes i..

What is the maximum current starting current : If the controller is designed to switch the stator windings from a Δ connection to a Y connection during starting, what is the maximum starting current that the controller must be designed to handle?

Explain this in a mathematical way : Suppose that the inflation rate is 5%, the rate of growth of nominalGDP is 8%, then what is the rate of growth of real GDP? Could you explain this in a mathematical way?

Determine the depreciation rates per mile : Using the units-of-production method, 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

Will the same strategy work for your company : With respect to strategic management, what types of competitive strategies are the most effective?

Discuss relative importance of marketing research report : Discuss the relative importance of the marketing research report to other stages in the marketing research process. Review the components of the elements of a Marketing Report. Then identify and differentiate the three major sections of a marketing ..

What is the business cycle : What is the business cycle and how is it relevant to economics?

What is the angle of projection when it is at half its : The total speed of a projectile at the greatest height v1 is √6/7 of its total speed when it is at half its greatest height. What is the angle of projection?

User Account

All Pages