144. 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 LifeAccumulated Depreciation at Beginning of YearMiles Operated During Year
1$100,000$13,000300,000--30,000
272,9009,900300,000$60,00025,000
338,0003,000200,0008,05045,000
490,00013,000200,00020,15040,000
Required:
(1)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.
145. Champion Company purchased and installed carpet in its new general offices on March 30 for a total cost of $18,000. The carpet is estimated to have a 15-year useful life and no residual value.
a.Prepare the journal entries necessary for recording the purchase of the new carpet.
b.Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet assuming that Champion Company uses the straight-line method.
146. Equipment acquired on January 2, 2011 at a cost of $273,500 has an estimated useful life of eight years and an estimated residual value of $35,500.
Required:
What was the annual amount of depreciation for the years 2011, 2012, and 2013, assuming the straight-line method of depreciation is used?
(2)What was the book value of the equipment on January 1, 2014?
(3)Assuming that the equipment was sold on January 2, 2014, for $170,500, journalize the entry to record the sale.
(4)Assuming that the equipment had been sold on January 2, 2014, for $189,000 instead of $168,500, journalize the entry to record the sale.