Question

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 $27,680, paying cash.
Nov. 2.	Paid garage $725 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 of $4,900 for the truck.
Year 2
Jan. 6.	Purchased a new truck for $49,850, paying cash.
Apr. 1.	Sold the used truck for $15,050. (Record depreciation to date in Year 2 for the truck.)
June 11.	Paid garage $450 for miscellaneous repairs to the truck.
Dec. 31.	Record depreciation for the new truck. It has an estimated residual value of $9,185 and an estimated life of five years.
Year 3
July 1.	Purchased a new truck for $53,640, paying cash.
Oct. 2.	Sold the truck purchased January 6, Year 2, for $17,607. (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 $12,345 and an estimated useful life of eight years.

Journalize the transactions and the adjusting entries. Refer to the Chart of Accounts for exact wording of account titles.

Journal

Journalize the transactions and the adjusting entries. Refer to the Chart of Accounts for exact wording of account titles. Scroll down to access pages 2 and 3 of the journal. Do not round intermediate calculations.

Journalize the Year 1 transactions and adjusting entries on Page 1.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5		Adjusting Entries
6
7

Journalize the Year 2 transactions and adjusting entries on Page 2.

PAGE 2

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6
7
8
9
10
11		Adjusting Entries
12
13

Journalize the Year 3 transactions and adjusting entries on Page 3.

PAGE 3

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6
7
8
9		Adjusting Entries
10
11

Please answer in the format I have provided

Thanks

Answer 1

Legacy Furniture Co. Debit in $ Credit in $ Journal Enteries Date Particulars Year 1 4.1.Year 1 Delivery Truck a/c To Cash (Delivery Truck Purchased) Dr. 27680 27680 Dr. 725 2.11. Year1 Truck Repair Expense a/c To Cash (Repair expenses paid) 725 13840 31.12.Year1 Depreciation Expense - Delivery Truck a/c Dr. To Accum. Depre - Delivery Truck (To record depreciation) 27680 x 2 x 1/4 13840 Year 2 6.1. Year 2 Dr. 49850 Delivery Truck a/c To Cash (Delivery Truck Purchased) 49850 1.4.Year 2 Depreciation Expense - Delivery Truck a/c Dr. 1730 To Accum. Depre - Delivery Truck (To record depreciation) (27680 - 13840) x 2 x 1/4 x 3/12 1730 1.4.Year 2 Dr. 15570 15050 Accum. Depre - Delivery Truck a/c Cash a/c Dr. To Delivery Truck To Gain on Sale of Delivery Truck (Truck sold) 27680 2940 Dr. 450 11.6.Year 2 Truck Repair Expense a/c To Cash (Repair expenses paid) 450 19940 31.12.Year2 Depreciation Expense - Delivery Truck a/c Dr. To Accum. Depre - Delivery Truck (To record depreciation) 49850 x 2 x 1/5 19940 Year 3 1.7.Year 3 Dr. 53640 Delivery Truck a/c To Cash (Delivery Truck Purchased) 53640 2.10. Year 3 Depreciation Expense-Delivery Truck a/c Dr. 8973 To Accum. Depre - Delivery Truck (To record depreciation) (49850 - 19940 ) x 2 x 1/5 x 9/12 8973 Dr. 2.10.Year 3 Accum. Depre - Delivery Truck a/c Cash a/c Dr. Loss on sale of Delivery Truck a/c To Delivery Truck (Truck sold) 28913 17607 3330 Dr. 49850 6705 31.12.Year3 Depreciation Expense - Delivery Truck a/c Dr. To Accum. Depre - Delivery Truck (To record depreciation) 53640 x 2 x 1/8 x 1/2 6705