10-5 (Algorithmic) Transactions for Fixed Assets, Including Sale The following transactions, adjusting entries, and closing entries were completed by King 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. 2010 Jan. 4. Purchased a used delivery truck for $77,760, paying cash. Feb. 24. Paid garage $200 for changing the oil, replacing the oil filter, and tuning the engine on the delivery truck. Dec. 31. Recorded depreciation on the truck for the fiscal year. The estimated useful life of the truck is 9 years, with a residual value of $16,300 for the truck. 2011 Jan. 3. Purchased a new truck for $88,200, paying cash. Mar. 7. Paid garage $390 to tune the engine and make other minor repairs on the used truck. Apr. 30. Sold the used truck for $53,750. (Record depreciation to date in 2011 for the truck.) Dec. 31. Record depreciation for the new truck. It has an estimated trade-in value of $15,900 and an estimated life of 7 years. 2012 July 1. Purchased a new truck for $94,000, paying cash. Oct. 7. Sold the truck purchased January 3, 2011, for $52,100. (Record depreciation for the year.) Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $16,900 and an estimated useful life of 10 years. Instructions: Journalize the transactions and the adjusting entries. If an amount box does not require an entry, leave it blank or enter "0". 2010 Jan. 4 Feb. 24 Dec. 31 2011 Jan. 3 Mar. 7 Apr. 30-Deprec. Apr. 30-Sale Dec. 31 2012 July 1 Oct. 7-Deprec. Oct. 7-Sale Dec. 31