1. The following transactions and adjusting entries were completed by Robinson Furniture Co. during a two-year period. All are related to the use of delivery truck. The double-declining- balance method of depreciation is used. Year 1 January 8. Purchased a delivery truck for $38,400, paying cash. March 7. Paid garage $220 for changing the oil, replacing the oil filter, and tuning the engine on the truck. December 31. Recorded depreciation on the truck for the fiscal year. The estimated useful life of the truck is 8 years, with a residual value of $8,100 for the truck. Year 2 February 28. Paid garage $280 to tune the engine and make other minor repairs on the truck. April 30. Sold the truck for $25,300. (Record depreciation to date in Year 2 for the truck.) Required: Journalize the transactions. 2. Equipment purchased at the beginning of the fiscal year for $360,000 is expected to have a useful life of 5 years, or 14,000 operating hours, and a residual value of $10,000. Required: Compute the depreciation for the first and second years of use by each of the following methods: a. Straight-line b. Units-of-activity (1,200 hours first year; 2,250 hours second year). c. Double-declining-balance 3. Describe in general how debt financing differs from equity financing.