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 $27,200, 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 of $5,005 for the truck.
Year 2
Jan. 6.	Purchased a new truck for $49,250, paying cash.
Apr. 1.	Sold the used truck for $14,670. (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 $8,950 and an estimated life of five years.
Year 3
July 1.	Purchased a new truck for $53,920, paying cash.
Oct. 2.	Sold the truck purchased January 6, Year 2, for $17,125. (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 $12,945 and an estimated useful life of eight years.

Answer 1

Solution's year 1 27 200 Janu 127200 630 Nov 2 630 Delivery truck cash Truck Repair expense cash Depreciation expense-Delivery truck Accum. Deprecation - Delivery truck (To record depreciation) (27200 * 4x2] year-2 13600 Dec 31 13600 Jan 6 49250 Apr1 1700 Apr 4 Delivery truck cash 149250 Depreciation expense - Delivery trucks 1700 Accum- Depreciation-Delivery truck To record three month Dep) [27200-13600)*(* *2)*32] sceun. Depreciation - Delivery truck 15300 cash 14 670 Gain on sale of truck 2770 Delivery truck 127200 Truck Repair expense 450 cash Depreciation expense-Delivery truck 19700 Accum. Depreciation - Delivery truck 19700 Gorecord depreciation) (49250x2x2) Join U50 Dec 31

year 3 53920 Juli Delivery truck 53920 cash oct 2 8865 Depseciationexpense-Delivery truck 8865 Accum. Dapreciation - Delivery truck (To record depreciation) [149250-19700X / x2) xq cash oct 2 17125 2856 Accum. Depreciation-Delivery truck loss on sale of Delivery truck Delivery truck 13560 49250 Dec 31 113480 Depreciation expense-Delivery touck Accum. Depreciation - Delivery trucks Torecord depreciation] [53920 x 1 x2] 13480