The Hang-Out, a popular pizza hang-out, has a thriving delivery business. The Hang-Out has a fleet of three delivery vehicles and they use the units of production (kilometre) method of depreciation. Prior to making the entry for this year's depreciation expense, the asset register for the fleet is as follows:
Required:
(a) Determine the depreciation rates per kilometre 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.

Question

The Hang-Out, a popular pizza hang-out, has a thriving delivery business. The Hang-Out has a fleet of three delivery vehicles and they use the units of production (kilometre) method of depreciation. Prior to making the entry for this year's depreciation expense, the asset register for the fleet is as follows:
  Required:
(a) Determine the depreciation rates per kilometre 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.

Quizplus · Accepted Answer

The Answer of The Hang-Out, a popular pizza hang-out, has a thriving delivery business. The Hang-Out has a fleet of three delivery vehicles and they use the units of production (kilometre) method of depreciation. Prior to making the entry for this year's depreciation expense, the asset register for the fleet is as follows:
  Required:
(a) Determine the depreciation rates per kilometre 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.

The Hang-Out, a Popular Pizza Hang-Out, Has a Thriving Delivery