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The following transactions and adjusting entries were completed by Legacy Furniture Co. during a three-year period. All are related to the use of...
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.
Year 1
Jan. 4.Purchased a used delivery truck for $27,680, paying cash.
Nov. 2.Paid garage $725 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 $4,900 for the truck.
Year 2
Jan. 6.Purchased a new truck for $49,850, paying cash.
Apr. 1.Sold the used truck for $15,050. (Record depreciation to date in Year 2 for the truck.)
June 11.Paid garage $450 for miscellaneous repairs to the truck.
Dec. 31.Record depreciation for the new truck. It has an estimated residual value of $9,185 and an estimated life of five years.
Year 3
July 1.Purchased a new truck for $53,640, paying cash.
Oct. 2.Sold the truck purchased January 6, Year 2, for $17,607. (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 $12,345 and an estimated useful life of eight years
There should be 31 entries in total!! :)
.Journalize the transactions and the adjusting entries. Refer to the Chart of Accounts for exact wording of account titles.
