On January 1, 2016, a corporation acquired a truck for $100,000
Residual value was estimated to be $20,000. The truck can be driven for 50,000 miles over the next three years. Actual usage of the truck was recorded as 8,640 miles for the first year. Give the journal entry to record depreciation for the first year calculated as per the units-of-production method. (Do not round your intermediate calculations.)
What will be an ideal response
Depreciation Expense—Truck 13,824
Accumulated Depreciation—Truck 13,824 .Depreciation per year = (Cost - Residual value) / Estimated total units
Rate of depreciation = ($100,000 - $20,000 ) / 50,000 = $1.60/mile
Depreciation for the first year = 8,640 miles x $1.60/mile = $13,824
You might also like to view...
All important events that influence the prospects for the entity are recorded and therefore are reflected in the financial statements
Indicate whether the statement is true or false
Ratios used to evaluate the allowance for uncollectibles are
a. Bad Debt Expense to Sales Revenue and the ratio of the Accounts Receivable, Gross to Allowance for Uncollectibles to Accounts. b. Sales Revenue to Bad Debt Expense and the ratio of the Accounts Receivable, Gross to Allowance for Uncollectibles to Accounts. c. Sales Revenue to Bad Debt Expense and the ratio of the Allowance for Uncollectibles to Accounts Receivable, Gross. d. Bad Debt Expense to Sales Revenue and the ratio of the Allowance for Uncollectibles to Accounts Receivable, Gross. e. none of the above.
Which of the following was identified as a notable research program within management practices?
a. MacGregor’s Theory X and Y b. Blake and Mouton’s managerial grid c. Herzberg’s studies of worker motivation d. all the above
Punctuate the sentence correctly. This survey yields some key information for example 89 percent of callers have experienced frustration with our automated telephone system