Question
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.