Question

The following transactions and adjusting entries were completed by Legacy Furniture Co. during a three-year period....

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.

Homework Answers

Answer #1

Depreciation entries

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The following transactions and adjusting entries were completed by Legacy Furniture Co. during a three-year period....
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 $28,400, paying cash. Nov. 2. Paid garage $750 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...
Transactions for Fixed Assets, Including Sale The following transactions and adjusting entries were completed by Robinson...
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 1 Jan. 8. Purchased a used delivery truck for $38,400, 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...
Transactions for Fixed Assets, Including Sale The following transactions and adjusting entries were completed by Robinson...
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 1 Jan. 8. Purchased a used delivery truck for $61,440, paying cash. Mar. 7. Paid garage $230 for changing the oil, replacing the oil filter, and tuning the engine on the delivery truck. Dec. 31. Recorded depreciation on the truck for...
Yoshi Company completed the following transactions and events involving its delivery trucks. 2016 Jan. 1 Paid...
Yoshi Company completed the following transactions and events involving its delivery trucks. 2016 Jan. 1 Paid $22,015 cash plus $1,635 in sales tax for a new delivery truck estimated to have a five-year life and a $2,150 salvage value. Delivery truck costs are recorded in the Trucks account. Dec. 31 Recorded annual straight-line depreciation on the truck. 2017 Dec. 31 Due to new information obtained earlier in the year, the truck’s estimated useful life was changed from five to four...
Dexter Industries purchased packaging equipment on January 1 for $72,000. The equipment was expected to have...
Dexter Industries purchased packaging equipment on January 1 for $72,000. The equipment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $4,500. The equipment was used for 7,600 hours during Year 1, 6,000 hours in Year 2, and 4,400 hours in Year 3. Instructions Determine the amount of depreciation expense for the first year by (a) the straight-line method (b) the units-of-activity method (c) the double-declining-balance method. Exercise 2 The...
NeverLate Ltd. completed the following transactions involving delivery trucks: 2020 Mar. 26 Paid cash for a...
NeverLate Ltd. completed the following transactions involving delivery trucks: 2020 Mar. 26 Paid cash for a new delivery truck, $87,000 plus $6,600 of freight costs. The truck was estimated to have a five-year life and a $10,000 trade-in value. Dec. 31 Recorded straight-line depreciation on the truck to the nearest whole month. 2021 Dec. 31 Recorded straight-line depreciation on the truck to the nearest whole month. However, due to new information obtained early in January, the original estimated useful life...
Entries Related to Uncollectible Accounts The following transactions were completed by The Wild Trout Gallery during...
Entries Related to Uncollectible Accounts The following transactions were completed by The Wild Trout Gallery during the current fiscal year ended December 31: Jan. 19. Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalized the receipt of $2,145 cash in full payment of Arlene’s account. Apr. 3. Wrote off the $12,290 balance owed by Premier GS Co., which is bankrupt. July 16. Received 40% of the $22,100 balance owed by Hayden...
Aussie Furniture Removals Limited provides furniture removal services in Australia. The following transactions relate to the...
Aussie Furniture Removals Limited provides furniture removal services in Australia. The following transactions relate to the purchase of a new delivery truck. Aussie Furniture Removals Limited is registered for GST and the GST rate is 10%. 1 July 2019 On 1 July 2019, a new delivery truck was purchased. The delivery truck had a recommended retail price of $165,000 (excluding GST), but after careful negotiation, it was purchased for $158,000 (excluding GST). The company also paid stamp duty of $5,000...
Champion Contractors completed the following transactions involving equipment. Year 1 Jan. 1 Paid $302,000 cash plus...
Champion Contractors completed the following transactions involving equipment. Year 1 Jan. 1 Paid $302,000 cash plus $12,080 in sales tax and $1,800 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $30,200 salvage value. Loader costs are recorded in the Equipment account. Jan. 3 Paid $5,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by...
Analyze and journalize end of period adjusting entries as necessary based on the following information in...
Analyze and journalize end of period adjusting entries as necessary based on the following information in General Journal. Use the standard 4 column date, account name (and note), credit, and debit, format. 14 December 31, 2009 - Record the depreciation for all equipment for the year. Management estimates annual depreciation as the amount to the right. 209,688 15 December 31, 2009 - On January 31, 2009, Tech Co purchased a truck. Record any necessary adjusting entries for the note used...