Transactions for fixed assets, including sale Obj. 1, 2, 3 The following transactions and adjusting entries were

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Transactions for fixed assets, including sale Obj. 1, 2, 3 The 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 $26,000, paying cash.

Nov. 2. Paid garage $825 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 $2,000 for the truck.

Year 2 Jan. 6. Purchased a new truck for $60,000, paying cash.
Apr. 1. Sold the used truck for $14,000. (Record depreciation to date in Year 2 for the truck.)
June 11. Paid garage $280 for miscellaneous repairs to the truck.
Dec. 31. Record depreciation for the new truck. It has an estimated residual value of $7,000 and an estimated life of five years.
Year 3 July 1. Purchased a new truck for $65,000, paying cash.
Oct. 2. Sold the truck purchased January 6, Year 2, for $19,520. (Record depreciation to date for Year 3 for the truck.)
Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $6,000 and an estimated useful life of eight years.
Instructions Journalize the transactions and the adjusting entries.AppendixLO1

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Corporate Financial Accounting

ISBN: 9781337398176

15th Edition

Authors: Carl Warren, Jefferson Jones

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