Assignment eBook Calculator Print Item ansactions for Fixed Assets, including Sale e following transactions and adjusting entries were completed by Robinson Furniture Co. during a three-year period. All are related to the use of delivery equipment. The double declining balance thod of depredation is used. ar 1 an. 8. Purchased a used delivery truck for $47,040, paying cash. lar. 7. Paid garage $180 for changing the oil, replacing the oil filter, and tuning the engine on the delivery truck. 31. Recorded depreciation on the truck for the fiscal year. The estimated useful life of the truck is 7 years, with a residual value of $9,900 for the truck. 2 n. 9. Purchased a new truck for $87,480, paying cash. 28. Paid garage $270 to tune the engine and make other minor repairs on the used truck. 30. Sold the used truck for $29,050. (Record depreciation to date in Year 2 for the truck.) 31. Record depreciation for the new truck. It has an estimated trade-in value of $15,700 and an estimated life of 9 years. 3 1. Purchased a new truck for $86,000, paying cash. 4. Sold the truck purchased January 9, Year 2, for $60,560. (Record depreciation to date In Year 3 for the truck.) 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $15,500 and an estimated useful life of 10 years. ired: alize the transactions and the adjusting entries. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations. Round your final answers to the nearest cent 1. Jan. 8 Delivery Truck 47.0407 Previous w Work ore: 75.6% All work saved Email Instructor Save and the Submit Assignment for Ch. 9 Assignment eBook Calculator Printem Journalize the transactions and the adjusting entries. If an amount box does not require an entry, leave it blank. Do not found intermediate calculations, Round your final answers to the nearest cent. Delivery Truck Year 1, Jan. 8 Cash 47,040 Mar. 7 Truck Repair and Maintenance Expense 180 Cash & 180 Dec. 31 Depreciation Expense Delivery Truck Accumulated Depreciation Delivery Truck II II II II II II O D II I I do Year 2, Jan. 9 Delivery Truck Cash 87.480 Feb. 28 Truck Repair and Maintenance Expense 270 Cash 270 Apr 30-Deprec. Depreciation Expense-Delivery Truck Accumulated Depreciation Delivery Truck Apr 30-Sale Accumulated Depreciation Delivery Truck Previous Check My Work ignment Score: 75.6% All work saved Email Instruktor Save and Ex Submit Assignment for Grade rogress=false * 9 Assignment Calculator Print item eBook Accumulated preciation Delivery Truck Apr 30-Sale Cash Loss on Sale of Delivery Truck Delivery Truck Dec. 31 Depreciation Expense-Delivery Truck Accumulated Depreciation Delivery Truck Year 3, Sept. 1 Delivery Truck Cash Dili II II II JOU DII II II II III Sept. 4-Deprec. Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck ept. 4-Sale Cash Accumulated Depreciation Delivery Truck Delivery Truck Gain on Sale of Delivery Truck * My Work Score: 75.6% All work saved. Email Instructor Save and Exit Submit Assi Assignment eBook Calculator Print sem Accumulated Depreciation-Delivery Truck Sept. 4-Sale Cash Accumulated Depreciation-Delivery Truck Delivery Truck Gain on Sale of Delivery Truck ec. 31 Depreciation Expense Delivery Truck Accumulated Depreciation Delivery Truck Feedback Check My Work Expenditures that improve the asset are recorded as increases to the fixed asset. Expenditures that are ordinary maintenance and repairs are expensed. Pay attention to the dates fixed assets were purchased and/or sold. Compare the book value amount to the sale price. If the book value is less than the sale price, the asset was sold for a gain. If the book value is more than the sale price, the asset for a loss. If you no longer have the fixed asset what accounts would have to be eliminated? In the first year, the balance in the accumulated depreciation account is zero. Remember not to reduce book value below residual value.
