The following transactions, adjusting entries, and closing entries were complete
ID: 2462260 • Letter: T
Question
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 $28,000, paying cash. Nov. 2. Paid garage $675 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 $5,000 for the truck. 2015 Jan. 6. Purchased a new truck for $48,000, paying cash. Apr. 1. Sold the used truck for $15,000. (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 $9,000 and an estimated life of five years. 2016 July 1. Purchased a new truck for $54,000, paying cash. Oct. 2. Sold the truck purchased January 6, 2015, for $16,750. (Record depreciation to date for 2016 for the truck.) Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $12,000 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 in PAGE 1 JOURNAL Score: 76/76 DATE DESCRIPTION POST. REF DEBIT CREDIT 1Jan. 4, 2014 Delivery Truck 28,000.00 Cash 28,000.00 3Nov. 2. 2014 Truck Repair Expense 675.00 Cash 675.00 Adjusting Entries 6 Dec. 31, 2014 Depreciation Expense-Delivery Truck 14,000.00 Accumulated Depreciation-Delivery Truck 14,000.00 Points: 15 /15Explanation / Answer
Apr 01 2015 Cash 15000 Accumulated depriciation Delivery truck 15750 Gain on sale of truck 2750 Delivery truck 28000 Dec 31 2015 Depriciation Expense 19200 Accumulated depriciation Delivery truck 19200 Oct 2 2015 Depriciation Expense 8640 Accumulated depriciation Delivery truck 8640 Oct 2 2015 Cash 16750 Accumulated depriciation Delivery truck 27840 Loss on sale of truck 3410 Delivery truck 48000 Oct 2 2015 Depriciation Expense 6750 Accumulated depriciation Delivery truck 6750
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