Question

eBook Calculator Print them Transactions for Fixed Assets, Induding 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 $110 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 $320 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 $88,000, 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 $15,800 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 Lan Delivery Truck Cash Truck Rep Check My Work < Previous Next > Al work saved Save and Submit Assignment for Grading

Answer 1

year 1
8-Jan	Delivery Truck					77,760
	Cash						77,760
7-Mar	Truck repair expense					110
	Cash						110
31-Dec	Depreciation expense -Delivery Truck					17280
	Accumulated depreciation-Delivery Truck						17280
year 2
2-Jan	Delivery Truck					88,200
	cash						88,200
28-Feb	Truck repair expense					320
	Cash						320
30-Apr	Depreciation expense -Delivery Truck					4480
	Accumulated depreciation-Delivery Truck						2,000
30-Apr	Accumulated depreciation-Delivery Truck					21760
	Cash					53,750
	loss on sale of Delivery Truck					2,250
	Delivery Truck						77,760
31-Dec	Depreciation expense -Delivery Truck					25200
	Accumulated depreciation-Delivery Truck						25200
year 3
1-Sep	Delivery Truck					88,000
	cash						88,000
4-Sep	Depreciation expense -Delivery Truck					12000.0
	Accumulated depreciation-Delivery Truck						12000
4-Sep	Cash					53,600
	Accumulated depreciation-Delivery Truck					37200
	Delivery Truck						88,200
	gain on sale of Delivery Truck						2,600
31-Dec	Depreciation expense -Delivery Truck					5866.67
	Accumulated depreciation-Delivery Truck						5,866.67