Prior to Adjustment at the End of the Year, the Balance

question 213

Essay

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: $$\begin{array} { | l | l | l | l | l | l | } \hline \begin{array} { l } \text { Truck } \\\text { No. }\end{array} & \text { Cost } & \begin{array} { l } \text { Estimated } \\\text { Residual Value }\end{array} & \begin{array} { l } \text { Estimated } \\\text { Useful Life }\end{array} & \begin{array} { l } \text { Accumulated } \\\text { Depreciation at } \\\text { Beginning of Year }\end{array} & \begin{array} { l } \text { Miles } \\\text { Operated } \\\text { During Year }\end{array} \\\hline 1 & \$ 100,000 & \$ 13,000 & 300,000 & - & 30,000 \\\hline 2 & 72,900 & 9,900 & 300,000 & \$ 60,000 & 25,000 \\\hline 3 & 38,000 & 3,000 & 200,000 & 8,050 & 45,000 \\\hline 4 & 90,000 & 13,000 & 200,000 & 20,150 & 40,000 \\\hline\end{array}$$ Required:
1) Based on the units-of-output 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.
2) Journalize the entry to record depreciation for the year.

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Definitions:

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Motivation that comes from outside of the individual, often in the form of praise, money, or a physical reward.

Intrinsic Motivation

A drive to engage in activities for their own sake, deriving pleasure and satisfaction from the activity itself rather than from external rewards.

For Its Own Sake

Undertaking an activity for the pleasure and value derived directly from the activity itself, rather than for achieving an external goal.

Biologically Determined

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