Answer
Depreciation rates are calculated in following working table:
Working |
Truck 1 |
Truck 2 |
Truck 3 |
Truck 4 |
TOTAL |
|
A |
Cost |
$100,000 |
$72,900 |
$38,000 |
$90,000 |
$300,900 |
B |
Residual value |
$13,000 |
$9,900 |
$3,000 |
$13,000 |
|
C = A - B |
Depreciable base |
$87,000 |
$63,000 |
$35,000 |
$77,000 |
|
D |
Estimated life [no. of miles] |
300,000 |
300,000 |
200,000 |
200,000 |
|
E = C/D |
Depreciation rate per mile operated = ANSWER |
$0.3 |
$0.2 |
$0.2 |
$0.4 |
|
F |
Miles operated during year |
30,000 |
25,000 |
45,000 |
40,000 |
|
G = E x F |
Depreciation expense for the year = ANSWER: Amount credited to Accumulated Depreciation section |
$9,000 |
$5,000 |
$9,000 |
$16,000 |
$39,000 |
Date |
Accounts title |
Debit |
Credit |
Dec-31 |
Depreciation expense Equipment [Trucks] |
$39,000 |
|
Accumulated Depreciation - Equipment [Trucks] |
$39,000 |
||
(Depreciation expense recorded for the year) |
Prior to adjustment at the end of the year, the balance in Trucks is $300,900 and...
Prior to adjustment at the end of the year, the balance in Trucks is $302,210 and the balance in Accumulated Depreciation—Trucks is $100,920. Details of the subsidiary ledger are as follows: Estimated Accumulated Depreciation at Miles Operated Truck No. Cost Residual Value Useful Life Beginning of Year During Year 1 $83,960 $15,360 245,000 miles — 20,600 miles 2 51,050 5,930 300,800 miles $14,700 33,800 miles 3 77,486 12,910 201,800 miles 62,180 8,100 miles 4 89,714 22,010 241,800 miles 24,040 22,500...
I need help with unanswered parts.
Depreciation by units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $419,900 and the balance in Accumulated Depreciation-Trucks is $128,880. Details of the subsidiary ledger are as follows: Miles Estimated Residual Value Truck No. Accumulated Depreciation at Beginning of Year Estimated Useful Life Operated During Year Cost $84,500 30,000 miles 119,900 37,000 $12,675 14,388 14,420 13,500 200,000 miles 370,000 207,000 300,000 $23,980 $82,400 103,000 112,500 20,700 36,000...
9. EX.09-08.BLANKSHEET.ALGO (Algorithmic) Depreciation by units-of-activity method Instructions Prior to adjustment at the end of the vear the balance in Trucks is $300,238 and the balance in Accumulated Depreciatio Truck No. Accumulated Depreciation at Beginning of Year WN - Cost $83,868 48,646 76,248 91,476 Estimated Residual Value Useful Life $15,100 245,600 miles 6,170 303,400 miles 13,690 201,800 miles 22,920 236,400 miles Miles Op During 20,000 33,200 8,200 22,900 $14,610 61.470 26,170 A. Determine the depreciation rates per mile and the...
CHART OF ACCOUNTS
General Ledger
ASSETS
110
Cash
111
Petty Cash
112
Accounts Receivable
114
Interest Receivable
115
Notes Receivable
116
Merchandise Inventory
117
Supplies
119
Prepaid Insurance
120
Land
123
Trucks
124
Accumulated Depreciation-Trucks
125
Equipment
126
Accumulated Depreciation-Equipment
130
Mineral Rights
131
Accumulated Depletion
132
Goodwill
133
Patents
LIABILITIES
210
Accounts Payable
211
Salaries Payable
213
Sales Tax Payable
214
Interest Payable
215
Notes Payable
EQUITY
310
Common Stock
311
Retained Earnings
312
Dividends
313
Income Summary
REVENUE...
That's the complete question. E.
Three different companies each purchased trucks on January 1, Year 1, for $50,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $5,000. All three trucks were driven 66,000 miles in Year 1. 42,000 miles in Year 2,40,000 miles in Year 3, and 60,000 miles in Year 4. Each of the three companies earned $40,000 of cash revenue during each of the four years. Company A uses...
The following adjusted year-end trial balance at December 31 of Wilson Trucking Company. Account Title Debit Credit Cash $ 9,000 Accounts receivable 16,500 Office supplies 2,000 Trucks 189,000 Accumulated depreciation—Trucks $ 38,934 Land 75,000 Accounts payable 13,000 Interest payable 3,000 Long-term notes payable 52,000 Common stock 35,880 Retained earnings 137,500 Dividends 19,000 Trucking fees earned 135,500 Depreciation expense—Trucks 25,112 Salaries expense 63,549 Office supplies expense 5,000 Repairs expense—Trucks 11,653 Totals $ 415,814 $ 415,814 The Retained Earnings account balance...
8-35 Units-of-Production Depreciation Method The Rockland Transport Company has many trucks that have an estimated useful life of 200,000 miles. The company computes depreciation on a mileage basis. Suppose Rockland purchases a new truck for $100,000 cash. Its expected residual value is $10,000. Its mileage during year 1 is 60,000 and during year 2 is 90,000. · What is the depreciation expense for each of the 2 years? Compute the gain or loss if Rockland sells the truck for $40,000...
The balance in the prepaid insurance account, before adjustment at the end of the year, is $18,420. The year end is March 31. Journalize the March 31 adjusting entry required under each of the following alternatives for determining the amount of the adjustment: (a) the amount of insurance expired during the year is $15,780; (b) the amount of unexpired insurance applicable to future periods is $2,640. Refer to the Chart of Accounts for exact wording of account titles. CHART OF...
Three different companies each purchased trucks on January 1, Year 1, for $72,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $7,000. All three trucks were driven 67,000 miles in Year 1, 42,000 miles in Year 2, 40,000 miles in Year 3, and 62,000 miles in Year 4. Each of the three companies earned $61,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B...
Instructions The unadjusted trial balance of Lakota Freight Co. at March 31, 2044, the end of the year, follows: Lakota Freight Co. UNADJUSTED TRIAL BALANCE March 31, 2014 ACCOUNT TITLE DEBIT CREDIT Cash 11,000.00 2 Supplies 31,000.00 Prepaid Insurance 4,800.00 Equipment 100,000.00 Accumulated Depreciation-Equipment 25,000.00 Trucks 60.000.00 Accumulated Depreciation-Trucks 15.000.00 Accounts Payable 6.000.00 Instructions 9 Common Stock 29,000.00 10 Retained Earnings 45,200.00 11 Dividends 15,000.00 12 Service Revenue 170,000.00 44,000.00 13 Wages Expense 14 Rent Expense 10,600.00 15 Truck Expense...