Jack's a Popular Pizza Hang-Out Has a Thriving Delivery Business

Essay

Jack's a popular pizza hang-out has a thriving delivery business. Jack's has a fleet of three delivery automobiles. Prior to making the entry for this year's depreciation expense the subsidiary ledger for the fleet is as follows: $\begin{array}{cccccc}& &&& \text { Accumulated } \\&&& \text { Estimated } & \text { Depr.-Beg. }&\text { Miles Operated } \\ \text { Car }&\text { Cost } & \text { Salvage Value } &\text { Life inMiles } & \text { of the Year } & \text { During Year }\\\hline1 & \$ 21,000 & \$ 3,000 & 75,000 & \$ 2,520 & 20,000 \\2 & 18,000 & 2,400 & 60,000 & 2,340 & 22,000 \\3 & 23,500 & 2,500 & 70,000 & 2,000 & 19,000\end{array}$
Instructions
(a) Determine the depreciation rates per mile for each car.
(b) Determine the depreciation expense for each car for the current year.
(c) Make one compound journal entry to record the annual depreciation expense for the fleet.