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 A method of depreciation that provides periodic depreciation expense based on the declining book value of a fixed asset over its estimated life.double-declining-balance method of The systematic periodic transfer of the cost of a fixed asset to an expense account during its expected useful life.depreciation is used.
Year 1 | |
Jan. 8 | Purchased a used delivery truck for $24,000, paying cash. |
Mar. 7 | Paid garage $900 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 four years, with a residual value of $4,000 for the truck. |
Year 2 | |
Jan. 9 | Purchased a new truck for $50,000, paying cash. |
Feb. 28 | Paid garage $250 to tune the engine and make other minor repairs on the used truck. |
Apr. 30 | Sold the used truck for $9,500. (Record depreciation to date in Year 2 for the truck.) |
Dec. 31 | Record depreciation for the new truck. It has an estimated residual value of $12,000 and an estimated life of eight years. |
Year 3 | |
Sept. 1 | Purchased a new truck for $58,500, paying cash. |
Sept. 4 | Sold the truck purchased January 9, Year 2, for $36,000. (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 $16,000 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.
Year 1 Jan. 8 |
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Mar. 7 |
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Dec. 31 |
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Year 2 Jan. 9 |
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Feb. 28 |
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Apr. 30 Deprec. |
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Apr. 30 Sale |
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Dec. 31 |
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Year 3 Sept 1 |
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Sept. 4 Deprec. |
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Sept. 4 Sale |
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Dec. 31 |
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year 1 | |||||||||
8-Jan | Delivery Truck | 24,000 | |||||||
Cash | 24,000 | ||||||||
7-Mar | Truck repair expense | 900 | |||||||
Cash | 900 | ||||||||
31-Dec | Depreciation expense -Delivery Truck | 12000 | |||||||
Accumulated depreciation-Delivery Truck | 12000 | ||||||||
year 2 | |||||||||
2-Jan | Delivery Truck | 50,000 | |||||||
cash | 50,000 | ||||||||
28-Feb | Truck repair expense | 250 | |||||||
Cash | 250 | ||||||||
30-Apr | Depreciation expense -Delivery Truck | 2000 | |||||||
Accumulated depreciation-Delivery Truck | 2,000 | ||||||||
30-Apr | Accumulated depreciation-Delivery Truck | 14000 | |||||||
Cash | 9,500 | ||||||||
loss on sale of Delivery Truck | 500 | ||||||||
Delivery Truck | 24,000 | ||||||||
31-Dec | Depreciation expense -Delivery Truck | 12500 | |||||||
Accumulated depreciation-Delivery Truck | 12500 | ||||||||
year 3 | |||||||||
1-Sep | Delivery Truck | 58,500 | |||||||
cash | 58,500 | ||||||||
4-Sep | Depreciation expense -Delivery Truck | 6250 | |||||||
Accumulated depreciation-Delivery Truck | 6250 | ||||||||
4-Sep | Cash | 36,000 | |||||||
Accumulated depreciation-Delivery Truck | 18750 | ||||||||
Delivery Truck | 50,000 | ||||||||
gain on sale of Delivery Truck | 4,750 | ||||||||
31-Dec | Depreciation expense -Delivery Truck | 3900 | |||||||
Accumulated depreciation-Delivery Truck | 5,800 | ||||||||
The following transactions and adjusting entries were completed by Robinson Furniture Co. during a three-year period....
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 $38,400, paying cash. Mar. 7. Paid garage $180 for changing the oil, replacing the oil fiter, and tuning the engine on the delivery truck. Dec. 31. Recorded depreciation on the truck for...
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...
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 $61,440, paying cash. Mar. 7. Paid garage $220 for changing the oil, replacing the oil filter, and tuning the engine on the delivery truck. Dec. 31. Recorded depreciation on the truck for...
.............
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...
Calculator Printem 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 a Jan. 8. Purchased a used delivery truck for $61.440, paying cash Mar. 7. Paid garage 5230 for changing the oil, replacing the liter, and tuning the engine on the delivery truck. Dec. 31. Recorded depreciation on the...
The following transactions and adjusting entries were completed by Legacy Furniture Co during a three year period wted to the use of delivery equipment. The double declining balance method of depreciation is Year 1 Jan 4 Nov 2 Dec 31 Purchased a used delivery truck for $29,200, paying cash. Pald garage $650 for miscellaneous repairs to the truck Recorded depreciation on the truck for the year. The estimated sette of the track is four a sual value of 54,505 for...
nstructions 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 $28,000. paying cash Nov 2 Paid garage $675 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...
The following transactions, adjusting entries, and
closing 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 $29,200, paying
cash.
Nov. 2. Paid garage $650 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...
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 $27,200, paying cash. Nov. 2. Paid garage $630 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...
The following transactions and adjusting entries were completed by Legacy Furniture Co during a three-year period. Al are related to the use of delivery equipment. The double declining balance method of depreciation is used. Year 1 Jan. 4. Nov. 2 Dec 31 Purchased a used delivery truck for $28,400, paying cash. Paid garage 5710 for miscellaneous repairs to the truck Recorded depreciation on the truck for the year. The estimated useful fe of the truck is four year a residual...