The following transactions, adjusting entries, and closing entries were complete

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. 2014 Jan. 4. Purchased a used delivery truck for $28,400, paying cash. Nov. 2. Paid garage $710 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 $4,835 for the truck. 2015 Jan. 6. Purchased a new truck for $46,800, paying cash. Apr. 1. Sold the used truck for $15,145. (Record depreciation to date in 2015 for the truck.) June 11. Paid garage $465 for miscellaneous repairs to the truck. Dec. 31. Record depreciation for the new truck. It has an estimated residual value of $8,560 and an estimated life of five years. 2016 July 1. Purchased a new truck for $52,960, paying cash. Oct. 2. Sold the truck purchased January 6, 2015, for $16,356. (Record depreciation to date for 2016 for the truck.) Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $12,375 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. Be sure to include the YEAR in the date for the FIRST transaction on each page.

Journal

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 1

JOURNAL

1

2

3

4

5

Adjusting Entries

6

7

Journalize the 2015 transactions and adjusting entries on Page 2. Be sure to include the YEAR in the date for the FIRST transaction.

PAGE 2

JOURNAL

1

2

3

4

5

6

7

8

9

10

11

Adjusting Entries

12

13

Journalize the 2016 transactions and adjusting entries on Page 3. Be sure to include the YEAR in the date for the FIRST transaction.

PAGE 3

JOURNAL

1

2

3

4

5

6

7

8

9

Adjusting Entries

10

11

CHART OF ACCOUNTS Legacy Furniture Co. General Ledger 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 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary REVENUE 410 Sales 610 Interest Revenue 620 Gain on Sale of Delivery Truck 621 Gain on Sale of Equipment EXPENSES 510 Cost of Merchandise Sold 520 Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Delivery Truck 523 Delivery Expense 525 Truck Repair Expense 529 Selling Expenses 531 Rent Expense 532 Depreciation Expense-Equipment 533 Depletion Expense 534 Amortization Expense-Patents 535 Insurance Expense 536 Supplies Expense 539 Miscellaneous Expense 710 Interest Expense 720 Loss on Sale of Delivery Truck 721 Loss on Sale of Equipment

Explanation / Answer

2014

1. truck a/c dr. 28400

to cash 28400

2. truck repair dr. 710

to cash 710

3. Depreciation on truck dr. 5891

to truck 5891

2015

1. Truck a/c dr. 46800

to cash 46800

2. Cash a/c dr. 15145

Loss on sale of truck dr. 7346

to truck 22509

3. Garage & mis expense dr. 465

to cash 465

4. Depreciation dr. 7648

to truck 7648

2016

Truck a/c dr. 52960

to cash 52960

2. Bank a/c dr. 16356

Loss on sale of truck dr. 22796

to truck 39152

3. Depreciation dr. 5073

To truck 5073

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