Question

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 truck for the focal year. The estimated useful life of the truck is 8 years, with a residual value of $12.900 for the truck Year 2 Jan. 9. Purchased a new truck for $70,560, paying cash Feb. 28. Paid garage 5220 to tune the engine and make other minor repairs on the used truck Apr. 30. Sold the used truck for $40,440. (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 $12,700 and an estimated life of 7 years. Sept. 1. Purchased a new truck for $93,000, paying cash Sept. 4. Sold the truck purchaseduary 9, Year 2 for $42.900. (Record depreciation to date in Year for the truck.) Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $16.700 and an estimated us e of 10 years Required: Journalize the transactions and the adjusting entries. If an amount box does not require an entry, leavet bank. Do not round intermediate calculation Round your final answers to the nearest cent war on Delivery Truck

Answer 1

Journal Entry- Legacy Furniture
Date	Account Tittle & Explanation	Debit	Credit
Year 1
8-Jan	Delivery Truck	$61,440.00
	Cash		$61,440.00
	To Record Purchase of Truck
2-Nov	Repair Expense	$230.00
	Cash		$230.00
	To Record Repair Expense
31-Dec	Depreciation Expense—Delivery Truck	$15,360.00
	Accumulated Depreciation - Delivery Truck		$15,360.00
	[$61440 × (1/8 × 2)]
	To Record Depreciation Expense
Year 2
9-Jan	Delivery Truck	$70,560.00
	Cash		$70,560.00
	To Record Purchase of Truck
28-Feb	Repair Expense	$220.00
	Cash		$220.00
	To Record Repair Expense
30-Apr	Depreciation Expense—Delivery Truck	$1,920.00
	Accumulated Depreciation - Delivery Truck		$1,920.00
	[($61440 – $15360) × (1/8 × 2) × 4/12]
	To Record Depreciation Expense
	Accumulated Depreciation - Delivery Truck (15360+1920)	$17,280.00
	Cash	$40,440.00
	Loss on Sale of truck	$3,720.00
	Delivery Truck		$61,440.00
	To Record Sales of Truck
31-Dec	Depreciation Expense—Delivery Truck	$20,160.00
	Accumulated Depreciation - Delivery Truck		$20,160.00
	To Record Depreciation Expense
	[$70560 × (1/7 × 2)]
Year 3
1-Sep	Delivery Truck	$93,000.00
	Cash		$93,000.00
	To Record Purchase of Truck
4-Sep	Depreciation Expense—Delivery Truck	$9,600.00
	Accumulated Depreciation - Delivery Truck		$9,600.00
	To Record Depreciation Expense
	[($70560 – $20160) × (1/7 × 2) × 8/12]
	Cash	$42,900.00
	Accum. Depreciation—Delivery Truck (9600+20160)	$29,760.00
	Gan on Sale Truck		$2,100.00
	Delivery Truck		$70,560.00
	To Record Sales of Truck
31-Dec	Depreciation Expense—Delivery Truck	$3,100.00
	Accum. Depreciation—Delivery Truck		$3,100.00
	Delivery truck depreciation.
	[$93000 × (1/10 × 2) × 4/12]
	To Record Depreciation Expense