Exercise 9-7 (Part Level Submission) Linton Company purchased a delivery truck f

Question

Exercise 9-7 (Part Level Submission) Linton Company purchased a delivery truck for $32,000 on January 1, 2017. The truck has an expected salvage value of $1,200, and is expected to be driven 108,000 miles over its estimated useful life of 5 years. Actual miles driven were 16,900 in 2017 and 11,800 in 2018. (a1) Your answer is correct. Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g.o.so.) 0.29 per mile (a2) Your answer is correct. method. (Round 5

Explanation / Answer

Solution:

Part b1) – Journal Entry to record 2017 depreciation using straight line method

Annual Straight Line Depreciation = $6,160

Journal Entry

Account Titles and Explanation

Debit

Credit

Depreciation Expense

$6,160

Accumulated Depreciation - Truck

$6,160

(2017 Depreciation expenses recorded)

Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you

Account Titles and Explanation

Debit

Credit

Depreciation Expense

$6,160

Accumulated Depreciation - Truck

$6,160

(2017 Depreciation expenses recorded)

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.