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NNH&V Cable TV operates cable TV systems in larger cities in the northern two-thirds of New Hampshire and The franchise agreement with the cities requires an annual reporting to each city council of operating profit in that city. Thirty-three company expense categories, such as cable system repairs, re- pair truck depreciation, truck repairs, truck operating cost, as well as repair personnel costs, must be allocated to city-level income statements based on population calculated to a percentage that includes one decimal place. Cities currently served by NNH&V and their populations are:

Berlin, NH

13,084

Conway, NH

8,939

Hanover, VT

15,980

Laconia, NH

15,575

Lebanon, VT

11,134

Depreciation on the repair trucks is $8,000 per month. To record the monthly depreciation, five accounts are debited and a single credit is made to Accumulated Depreciation-Trucks.

Required:Respond to all of the questions below:

1. Calculate the amount of depreciation to be allocated to the respective city-level income statements.
2. How might entries made to the thirty-three accounts of NNH&V be automated to save on data-entry costs?
3. Assuming that the number of transactions and monthly adjustments that must be allocated is fifty-five, how many debits or credits can be saved by the solution you recommended in 2.?

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