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Question
Prior to adjustment at the end of the year, the balance in Trucks is $300,900 and the balance in Accumulated Depreciation—Trucks is $88,200. 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 | $100,000 | $13,000 | 300,000 | — | 30,000 |
| 2 | 72,900 | 9,900 | 300,000 | $60,000 | 25,000 |
| 3 | 38,000 | 3,000 | 200,000 | 8,050 | 45,000 |
| 4 | 90,000 | 13,000 | 200,000 | 20,150 | 40,000 |
a. Based on the units-of-activity 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. Round rates to 1/10 of a cent.
b. Journalize the adjusting entry to record depreciation for the year.
Answer
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