Question

1. 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 $77,760, paying cash.
   Mar. 7.	Paid garage $120 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 $16,300 for the truck.
   Year 2
   Jan. 9.	Purchased a new truck for $88,200, paying cash.
   Feb. 28.	Paid garage $350 to tune the engine and make other minor repairs on the used truck.
   Apr. 30.	Sold the used truck for $53,750. (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 $15,900 and an estimated life of 7 years.
   Year 3
   Sept. 1.	Purchased a new truck for $85,000, paying cash.
   Sept. 4.	Sold the truck purchased January 9, Year 2, for $53,600. (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 $15,300 and an estimated useful life of 10 years.

   Required:

   Journalize the transactions and the adjusting entries. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations. Round your final answers to the nearest cent.

   Year 1 Jan. 8	Delivery Truck
   	Cash
   Mar. 7	Truck Repair Expense
   	Cash
   Dec. 31	Depreciation Expense-Delivery Truck
   	Accumulated Depreciation-Delivery Truck
   Year 2 Jan. 9	Delivery Truck
   	Cash
   Feb. 28	Truck Repair Expense
   	Cash
   Apr. 30-Deprec.	Depreciation Expense-Delivery Truck
   	Accumulated Depreciation-Delivery Truck
   Apr. 30-Sale	Accumulated Depreciation-Delivery Truck
   	Cash
   	Loss on Sale of Delivery Truck
   	Delivery Truck
   Dec. 31	Depreciation Expense-Delivery Truck
   	Accumulated Depreciation-Delivery Truck
   Year 3 Sept. 1	Delivery Truck
   	Cash
   Sept. 4-Deprec.	Depreciation Expense-Delivery Truck
   	Accumulated Depreciation-Delivery Truck
   Sept. 4-Sale	Cash
   	Accumulated Depreciation-Delivery Truck
   	Delivery Truck
   	Gain on Sale of Delivery Truck
   Dec. 31	Depreciation Expense-Delivery Truck
   	Accumulated Depreciation-Delivery Truck

Answer 1

77760 Ro Yearl-Jan-8 Delivery 77760 Touck Cash Mar 7 Truck Repair Expense 120 Cash Dec 31 Depreciation Expense – Delivery Touck 17880 'Accumulated Deboegation -Palivoay Tawe pe Yea27-Jan-9 Delivery Truck 88700 Cash 17280 88200 350 Feb 28 Towak Repair Expense 350 Cash Apr 30 Depreciation Expanse Delivery Touch 4480 Accumulated Repreciation Doli vary Touch 4480 Apx 30 Accumulated Depreciation Delivery Touck 21760 Cash 253750 Loss on sale of Delivery Touch 225087 Delivery Truck 77760 Dec 31 Depreciation Expanse-Delivay Truck 25000 Accumulated Depreciation Delivey Touck P5200 ar3-sep.)- Delivey Truck Cash 85000 85000

LA Sep 4 13,500 Debreciation Exp-Delivery Accumulated Depreciatim Truck Delivery Tuep 13500 Sept Cash 53600 Accumulated Depreciation Deli 38700 A Delivery Touck 88200 Gainon Sale of Delivery touck 4100 Depreciation Expense-Delivery Truck 5666-67 Accumulated Depreciation - Delivery Truck 5666-67 Dec 3