Question

Transactions for Fixed Assets, Including Sale The following transactions and adjusting entries were completed by Robinson 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. 8. Purchased a used delivery truck for $48,600, paying cash. Mar. 7. Paid garage $130 for changing the oil, replacing the oil filter, and tuning the engine on the delivery truck. Dec. 31. Recorded depreciation on the truck for the fiscal year. The estimated useful life of the truck is 9 years, with a residual value of $10,200 for the truck. Year 2 Jan. 9. Purchased a new truck for $55,860, paying cash. Feb. 28. Paid garage $260 to tune the engine and make other minor repairs on the used truck. Apr. 30. Sold the used truck for $33,600. (Record depreciation to date in Year 2 for the truck.) Dec. 31. Record depreciation for the new truck. It has an estimated trade-in value of $10,100 and an estimated life of 7 years. Year 3 Sept. 1. Purchased a new truck for $86,000, paying cash. Sept. 4. Sold the truck purchased January 9, Year 2, for $34,000. (Record depreciation to date in Year 3 for the truck.) Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $15,500 and an estimated useful life of 10 years.
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Answer 1

Date		Account titles and explanation		Debit(in $)	Credit(in $)
Year 1
	Jan-08	Delivery Truck		48,600
		Cash			48,600
	Mar-07	Truck Repair and maintainance expenses		130
		Cash			130
	Dec-31	Depreciation expenses-Delivery Truck($48,600*22.22%)		10,800
		Accumulated Depreciation-Delivery Truck			10,800
Year 2
	Jan-09	Delivery Truck		55,860
		Cash			55,860
	Feb-28	Truck Repair and maintainance expenses		260
		Cash			260
Depreciation	Apr-30	Depreciation expenses-Delivery Truck($37,800*22.22%*4/12)		2,800
		Accumulated Depreciation-Delivery Truck			2,800
Sale	Apr-30	Accumulated Depreciation-Delivery Truck		13,600
		Cash		33,600
		Loss on sale of Delivery Truck		1,400
		Delivery Truck			48,600
	Dec-31	Depreciation expenses-Delivery Truck($55,860*28.5714286%)		15,960
		Accumulated Depreciation-Delivery Truck			15,960
Year 3
	Sep-01	Delivery Truck		86,000
		Cash			86,000
Depreciation	Sep-04	Depreciation expenses-Delivery Truck($39,900*28.5714286%*8/12)		7,600
		Accumulated Depreciation-Delivery Truck			7,600
Sale	Sep-04	Accumulated Depreciation-Delivery Truck		23,560
		Cash		34,000
		Gain on sale of Delivery Truck			1,700
		Delivery Truck			55,860
	Dec-31	Depreciation expenses-Delivery Truck($86,000*20%*4/12)		5,733
		Accumulated Depreciation-Delivery Truck			5,733