The following transactions, adjusting entries, and closingentries were completed by Legacy Furniture Co. during a three-yearperiod. All are related to the use of delivery equipment. Thedouble-declining-balance method of depreciation is used.
2014 Jan. 4. Purchased a used delivery truck for $27,680, payingcash.
Nov. 2. Paid garage $725 for miscellaneous repairs to thetruck.
Dec. 31. Recorded depreciation on the truck for the year. Theestimated useful life of the truck is four years, with a residualvalue of $4,900 for the truck.
2015 Jan. 6. Purchased a new truck for $49,850, paying cash.
Apr. 1. Sold the used truck for $15,050. (Record depreciation todate in 2015 for the truck.)
June 11. Paid garage $450 for miscellaneous repairs to thetruck.
Dec. 31. Record depreciation for the new truck. It has anestimated residual value of $9,185 and an estimated life of fiveyears.
2016 July 1. Purchased a new truck for $53,640, paying cash.
Oct. 2. Sold the truck purchased January 6, 2015, for $17,607.(Record depreciation to date for 2016 for the truck.)
Dec. 31. Recorded depreciation on the remaining truck. It has anestimated residual value of $12,345 and an estimated useful life ofeight years.
Journalize the transactions and the adjusting entries. Refer tothe Chart of Accounts for exact wording of account titles. Be sureto include the YEAR in the date for the FIRST transaction on eachpage.
Here are the chart of accounts
ASSETS
110 Cash
111 Petty Cash
112 Accounts Receivable
114 Interest Receivable
115 Notes Receivable
116 Merchandise Inventory
117 Supplies
119 Prepaid Insurance
120 Land
123 Delivery Truck
124 Accumulated Depreciation-Delivery Truck
125 Equipment
126 Accumulated Depreciation-Equipment
130 Mineral Rights
131 Accumulated Depletion
132 Goodwill
133 Patents
LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 SalesTax Payable 214 Interest Payable 215 Notes Payable
EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313Income Summary
REVENUE 410 Sales 610 Interest Revenue 620 Gain on Sale ofDelivery Truck 621 Gain on Sale of Equipment
EXPENSES 510 Cost of Merchandise Sold 520 Salaries Expense 521Advertising Expense 522 Depreciation Expense-Delivery Truck 523Delivery Expense 525 Truck Repair Expense 529 Selling Expenses 531Rent Expense 532 Depreciation Expense-Equipment 533 DepletionExpense 534 Amortization Expense-Patents 535 Insurance Expense 536Supplies Expense 539 Miscellaneous Expense 710 Interest Expense 720Loss on Sale of Delivery Truck 721 Loss on Sale of Equipment
ACTUAL QUESTIONS HERE:
Journalize the transactions and the adjusting entries. Refer tothe Chart of Accounts for exact wording of account titles. Scrolldown to access pages 2 and 3 of the journal. Be sure to include theYEAR in the date for the FIRST transaction on each page.
Journalize the 2014 transactions and adjusting entries on Page1. Be sure to include the YEAR in the date for the FIRSTtransaction.
Journalize the 2015 transactions and adjusting entries on Page2. Be sure to include the YEAR in the date for the FIRSTtransaction.
Journalize the 2016 transactions and adjusting entries on Page3. Be sure to include the YEAR in the date for the FIRSTtransaction
The following transactions, adjusting entries, and closingentries were completed by Legacy Furniture Co. during a three-yearperiod. All are related to the use of delivery equipment. Thedouble-declining-balance method of depreciation is used.
2014 Jan. 4. Purchased a used delivery truck for $27,680, payingcash.
Nov. 2. Paid garage $725 for miscellaneous repairs to thetruck.
Dec. 31. Recorded depreciation on the truck for the year. Theestimated useful life of the truck is four years, with a residualvalue of $4,900 for the truck.
2015 Jan. 6. Purchased a new truck for $49,850, paying cash.
Apr. 1. Sold the used truck for $15,050. (Record depreciation todate in 2015 for the truck.)
June 11. Paid garage $450 for miscellaneous repairs to thetruck.
Dec. 31. Record depreciation for the new truck. It has anestimated residual value of $9,185 and an estimated life of fiveyears.
2016 July 1. Purchased a new truck for $53,640, paying cash.
Oct. 2. Sold the truck purchased January 6, 2015, for $17,607.(Record depreciation to date for 2016 for the truck.)
Dec. 31. Recorded depreciation on the remaining truck. It has anestimated residual value of $12,345 and an estimated useful life ofeight years.
Journalize the transactions and the adjusting entries. Refer tothe Chart of Accounts for exact wording of account titles. Be sureto include the YEAR in the date for the FIRST transaction on eachpage.
Here are the chart of accounts
ASSETS
110 Cash
111 Petty Cash
112 Accounts Receivable
114 Interest Receivable
115 Notes Receivable
116 Merchandise Inventory
117 Supplies
119 Prepaid Insurance
120 Land
123 Delivery Truck
124 Accumulated Depreciation-Delivery Truck
125 Equipment
126 Accumulated Depreciation-Equipment
130 Mineral Rights
131 Accumulated Depletion
132 Goodwill
133 Patents
LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 SalesTax Payable 214 Interest Payable 215 Notes Payable
EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313Income Summary
REVENUE 410 Sales 610 Interest Revenue 620 Gain on Sale ofDelivery Truck 621 Gain on Sale of Equipment
EXPENSES 510 Cost of Merchandise Sold 520 Salaries Expense 521Advertising Expense 522 Depreciation Expense-Delivery Truck 523Delivery Expense 525 Truck Repair Expense 529 Selling Expenses 531Rent Expense 532 Depreciation Expense-Equipment 533 DepletionExpense 534 Amortization Expense-Patents 535 Insurance Expense 536Supplies Expense 539 Miscellaneous Expense 710 Interest Expense 720Loss on Sale of Delivery Truck 721 Loss on Sale of Equipment
ACTUAL QUESTIONS HERE:
Journalize the transactions and the adjusting entries. Refer tothe Chart of Accounts for exact wording of account titles. Scrolldown to access pages 2 and 3 of the journal. Be sure to include theYEAR in the date for the FIRST transaction on each page.
Journalize the 2014 transactions and adjusting entries on Page1. Be sure to include the YEAR in the date for the FIRSTtransaction.
Journalize the 2015 transactions and adjusting entries on Page2. Be sure to include the YEAR in the date for the FIRSTtransaction.
Journalize the 2016 transactions and adjusting entries on Page3. Be sure to include the YEAR in the date for the FIRSTtransaction
Related questions
Transactions for Fixed Assets, Including Sale
The following transactions, adjusting entries, and closingentries were completed by King Furniture Co. during a three-yearperiod. All are related to the use of delivery equipment. Thedouble-declining-balance method of depreciation is used.
| 2012 | |
| Jan. 4. | Purchased a used delivery truck for $61,440, paying cash. |
| Feb. 24. | Paid garage $240 for changing the oil, replacing the oilfilter, and tuning the engine on the delivery truck. |
| Dec. 31. | Recorded depreciation on the truck for the fiscal year. Theestimated useful life of the truck is 8 years, with a residualvalue of $12,900 for the truck. |
| 2013 | |
| Jan. 3. | Purchased a new truck for $70,560, paying cash. |
| Mar. 7. | Paid garage $390 to tune the engine and make other minorrepairs on the used truck. |
| Apr. 30. | Sold the used truck for $40,440. (Record depreciation to datein 2013 for the truck.) |
| Dec. 31. | Record depreciation for the new truck. It has an estimatedtrade-in value of $12,700 and an estimated life of 7 years. |
| 2014 | |
| July 1. | Purchased a new truck for $85,000, paying cash. |
| Oct. 7. | Sold the truck purchased January 3, 2013, for $41,700. (Recorddepreciation to date in 2014 for the truck.) |
| Dec. 31. | Recorded depreciation on the remaining truck. It has anestimated residual value of $15,300 and an estimated useful life of10 years. |
he 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 $28,000, paying cash. |
| Nov. 2 | Paid garage $635 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 $4,640 for the truck. |
| Year 2 | |
| Jan. 6 | Purchased a new truck for $49,400, paying cash. |
| Apr. 1 | Sold the used truck purchased on Jan. 4 of Year 1 for $15,180. (Record depreciation to date in Year 2 for the truck.) |
| June 11 | Paid garage $470 for miscellaneous repairs to the truck. |
| Dec. 31 | Recorded depreciation for the new truck. It has an estimated residual value of $9,470 and an estimated life of five years. |
| Year 3 | |
| July 1 | Purchased a new truck for $55,400, paying cash. |
| Oct. 2 | Sold the truck purchased January 6, Year 2, for $17,498. (Record depreciation to date for Year 3 for the truck.) |
| Dec. 31 | Recorded depreciation on the remaining truck purchased on July 1. It has an estimated residual value of $12,955 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.
