Question

General Ledger PR 10-5B Transactions for fixed assets, including sale OBJ. 1,2,3 The following transactions, adjusting entries, and closing 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. 2014 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. 2015 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 use truck. Apr. 30. Sold the used truck for $9,500. (Record depreciation to date in 2015 for the truck.) Dec 31. Record depreciation for the new truck. It has an estimated residual value o $12,000 and an estimated life of eight years.
journilize the entries

Answer 1

Particulars Debit Credit Year Date Vehicle - Truck No 1 $24,000.00 Jan 8, 2014 $24,000.00 Cash (Being Used Truck purchased) Mar 7, 2014 $900.00 Repairs and Maintainance Cash $900.00 (Being payment made for repair of truck) Dec 31, 2014 Depreciation $11,737.00 Accumulated Depreciation - Truck |(Being Depreciation provided) $11,737.00 Jan 9, 2015 Vehicle - Truck No 2 $50,000.00 2 $50,000.00 Cash (Being Truck purchased) Feb 28, 2015 Repairs and Maintainance $250.00 2 $250.00 Cash (Being payment made for repair of truck) April 30, 2015 Depreciation $2,016.00 2 Accumulated Depreciation Truck $2,016.00 (Being Depreciation provided) April 30, 2015 Accumulated Depreciation - Truck $13,753.00 $9,500.00 $747.00 2 Cash Loss on sale of asset Vehicle - Truck No 2 $24,000.00 (Being loss on sale of asset truck no 1) Dec 31, 2015 Depreciation $12,192.00 2 $12,192.00 Accumulated Depreciation - Truck (Being Depreciation provided)

Working Double Declining Balance Method (DDBM) = (2/Usefule Life* Book Value)/365* No of days used Assets - Truck No 1 Usefule life : 4 years (a) No of days Particulars Date Amount $24,000.00 ($11,737.00) $12,263.00 ($2,016.00) $10,247.00 Purchase 8-Jan-14 Less : Depreciation for the year [(2/4 x $24000)/365 x 357] 357.00 31-Dec-14 Written Down Book Value Less: Depreciation up date of sale [(2/4 x $12263)/365 x 120] 30-Apr-15 120.00 Written Down Book Value on the date of sale Sale Value $9,500.00 ($10,247.00) Less : Written Down Book Value on the date of sale Loss on sale of asset ($747.00) (b) Assets - Truck No 2 Usefule life : 8 years No of days Date Amount $50,000.00 ($12,192.00) $37,808.00 Purchase 9-Jan-15 Less : Depreciation for the year [(2/8 x $50000)/365 x 357] 31-Dec-15 356.00 Written Down Book Value