Lundquist, Inc., uses the group depreciation method for its furniture account. The depreciation rate used for furniture is 21%. The balance in the furniture account on December 31, 2012, was $125,000, and the balance in Accumulated Depreciation-Furniture was $61,000. The following purchases and dispositions of furniture occurred in the years 2013-2015 (assume that all purchases and disposals occurred at the beginning of each year).

1. Prepare the summary journal entries Lundquist should make each year (2013-2015) for the purchase, disposition, and depreciation of the furniture.
2. Prepare a summary of the furniture and accumulated depreciation accounts for the years 2013-2015.

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Assets Sold Year Assets Purchased Cost (Cash) $35,000 27,600 24,500 Cost Selling Price (Cash) $27,000 2013 2014 2015 15,000 6,000 8,000