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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The question is the instructions part

Transcribed Image Text:487
Chapter 9 Long-Term Assets: Fixed and Intangible
Year 2
Jan. 6. Purchased a new truck for $60,000, paying cash.
1. Sold the used truck for $14,000. (Record depreciation to date in Year 2 for the truck.)
Apr.
June 11. Paid garage $280 for miscellaneous repairs to the truck.
Dec. 31. Record depreciation for the new truck. It has an estimated residual value of $7,000 and an estimated life of
five years.
Year 3
July 1. Purchased a new truck for $65,000, paying cash.
2. Sold the truck purchased January 6, Year 2, for $19,520. (Record depreciation to date for Year 3 for the truck.)
Oct.
Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $6,000 and an estimated
useful life of eight years.
Instructions
Journalize the transactions and the adjusting entries.

Transcribed Image Text:PR 9-5A Transactions for fixed assets, including sale
The following transactions and adjusting entries were completed by Legacy Furniture Co. during
a three-year period. All are related to the use of delivery equipment. The double-declining-balance
method of depreciation is used.
Obj. 1, 2, 3
Year 1
Jan. 4. Purchased a used delivery truck for $26,000, paying cash.
Nov. 2. Paid garage $825 for miscellaneous repairs to the truck.
Dec. 31. Recorded depreciation on the truck for the year. The estimated useful life of the truck is four years, with a
residual value of $2,000 for the truck.
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