Instructions (This is all one question, please answer the following.) The follow
ID: 2460577 • Letter: I
Question
Instructions (This is all one question, please answer the following.)
The following transactions, adjusting entries, and closing 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.
Journalize the transactions and the adjusting entries. Refer to the Chart of Accounts for exact wording of account titles. Be sure to include the YEAR in the date for the FIRST transaction on each page.
2014 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. 2015 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 2015 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. 2016 July 1. Purchased a new truck for $53,920, paying cash. Oct. 2. Sold the truck purchased January 6, 2015, for $17,125. (Record depreciation to date for 2016 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. 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. Be sure to include the YEAR in the date for the FIRST transaction on each page. Journalize the 2014 transactions and adjusting entries on Page 1. Be sure to include the YEAR in the date for the FIRST transaction PAGE JOURNAL DATE DESCRIPTION POST REF CREDIT Adjusting EntriesExplanation / Answer
Answer Journal Date Description Post ref Debit Credit 01/04/2014 Delivery Truck 27200 Cash 27200 11/02/2014 Truck repair expenses 630 Cash 630 Adjusting Entries 12/31/2014 Depreciation exp – Delivery Truck 13600 Accumulated Dep – Delivery Truck 13600 Journal 01/06/2015 Delivery Truck 49250 Cash 49250 04/01/2015 Cash 14670 Depreciation exp – Delivery Truck 1700 Accumulated Dep – Delivery Truck 13600 Gain on sale of Delivery Truck 2770 Delivery Truck 27200 06/11/2015 Truck repair expenses 450 Cash 450 Adjusting Entries 12/31/2015 Depreciation exp – Delivery Truck 19700 Accumulated Dep – Delivery Truck 19700 Journal 07/01/2016 Delivery Truck 53920 Cash 53920 10/02/2016 Cash 17120 Depreciation exp – Delivery Truck 8865 Accumulated Dep – Delivery Truck 19700 Loss on sale of Delivery Truck 3565 Delivery Truck 49250 Adjusting Entries 12/31/2016 Depreciation exp – Delivery Truck 81740 Accumulated Dep – Delivery Truck 81740