The following transactions and adjusting entries were completed by Legacy Furniture Co. during a 3-year period. All are related to the use of delivery equipment. The double - declining - balance method of depreciation is used.Year 1Jan. 4. Purchased a used delivery truck for $28, 400, paying cash. Nov. 2. Paid garage $750 for miscellaneous repairs to the truck. Dec. 31. Recorded depreciation on the truck for the year. The estimated useful life of the truck is 4 years, with a residual value of $5,265 for the truck. Year 2Jan. 6. Purchased a new truck for $49, 700, paying cash.Apr. 1. Sold the used truck for $15, 140. (Record depreciation to date in Year 2 for the truck.)June 11. Paid garage $475 for miscellaneous repairs to the truck. Dec. 31. Record depreciation for the new truck. It has an estimated residual value of $8,795 and an estimated life of 5 years. Year 3July 1. Purchased a new truck for $53, 240, paying cash.Oct. 2. Sold the truck purchased January 6, Year 2, for $17,394. (Record depreciation to date for Year 3 for the truck.)Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $11,025 and an estimated useful life of 8 years.Required:Journalize the transactions and the adjusting entries.
The following transactions and adjusting entries were completed by Legacy Furniture Co. during a 3-year period. All are related to the use of delivery equipment. The double - declining - balance method of depreciation is used.Year 1Jan. 4. Purchased a used delivery truck for $28, 400, paying cash. Nov. 2. Paid garage $750 for miscellaneous repairs to the truck. Dec. 31. Recorded depreciation on the truck for the year. The estimated useful life of the truck is 4 years, with a residual value of $5,265 for the truck. Year 2Jan. 6. Purchased a new truck for $49, 700, paying cash.Apr. 1. Sold the used truck for $15, 140. (Record depreciation to date in Year 2 for the truck.)June 11. Paid garage $475 for miscellaneous repairs to the truck. Dec. 31. Record depreciation for the new truck. It has an estimated residual value of $8,795 and an estimated life of 5 years. Year 3July 1. Purchased a new truck for $53, 240, paying cash.Oct. 2. Sold the truck purchased January 6, Year 2, for $17,394. (Record depreciation to date for Year 3 for the truck.)Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $11,025 and an estimated useful life of 8 years.Required:Journalize the transactions and the adjusting entries.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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am. 137.
Transcribed Image Text:The following transactions and adjusting entries were completed by Legacy Furniture Co. during a 3-year period. All are related to the use of delivery equipment. The
double - declining - balance method of depreciation is used.Year 1Jan. 4. Purchased a used delivery truck for $28, 400, paying cash. Nov. 2. Paid garage $750 for
miscellaneous repairs to the truck. Dec. 31. Recorded depreciation on the truck for the year. The estimated useful life of the truck is 4 years, with a residual value of $5,265 for
the truck. Year 2Jan. 6. Purchased a new truck for $49, 700, paying cash.Apr. 1. Sold the used truck for $15, 140. (Record depreciation to date in Year 2 for the truck.)June
11. Paid garage $475 for miscellaneous repairs to the truck. Dec. 31. Record depreciation for the new truck. It has an estimated residual value of $8,795 and an estimated life
of 5 years. Year 3July 1. Purchased a new truck for $53, 240, paying cash.Oct. 2. Sold the truck purchased January 6, Year 2, for $17,394. (Record depreciation to date for
Year 3 for the truck.)Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $11,025 and an estimated useful life of 8
years.Required:Journalize the transactions and the adjusting entries.
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