Answer:
2019
Debit : Depreciation Expense $11,070
Credit : Accumulated Depreciation $11,070
2020
Debit : Depreciation Expense $9,720
Credit : Accumulated Depreciation $9,720
Step-by-step explanation:
Step 1 : Determine the rate of depreciation
Rate of Depreciation = (Cost - Residual Value) ÷ Estimated Production
= ($42,000 - $2,000) ÷ 150,000 miles
= $0.26666 or $0.27
Step 2 : Determine the Depreciation Expense
Depreciation Expense = Units for the period x Rate of Depreciation
therefore.
Depreciation Expense - 2019 = $0.27 x 41,000
= $11,070
Depreciation Expense - 2020 = $0.27 x 36,000
= $9,720
Step 3 : Journal entries
2019
Debit : Depreciation Expense $11,070
Credit : Accumulated Depreciation $11,070
2020
Debit : Depreciation Expense $9,720
Credit : Accumulated Depreciation $9,720