Reference no: EM13491761

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.