eBook Calculator Print them Transactions for Fixed Assets, Induding Sale The 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 method of depreciation is used. Year 1 Jan. 8. Purchased a used delivery truck for $77,760, paying cash Mar. 7. Paid garage $110 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. Year 2 Jan. 9. Purchased a new truck for $88,200, paying cash. Feb. 28. Paid garage $320 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 Year 2 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. Year 3 Sept. 1. Purchased a new truck for $88,000, paying cash. Sept. 4. Sold the truck purchased January 9, Year 2 for $53,600. (Record depreciation to date in Year 3 for the truck.) Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $15,800 and an estimated useful life of 10 years. Required: Journalize 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. Year Lan Delivery Truck Cash Truck Rep Check My Work Al work saved Save and Submit Assignment for Grading work Calculator Pri tem Depreciation Expense-Delivery Truck Dec. 31 Accumulated Depreciation-Delivery Truck Year 2, lan Delivery Truck Cash Truck Repair and Maintenance Expense Feb 28 Cash Apr 30 Deprec. Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck Apr 30-Sale Accumulated Depreciation-Delivery Truck Cash Loss on Sale of Delivery Truck Delivery Truck Dec. 31 Depreciation Expense-Delivery Truck Accumulated Depreciation Delivery Truck 3500 Year. Sept. Delivery Truck Cash l ivery Tree Set Degree Depreciation Exp Check My Work Previous Items Email instructor Save and Ent Submit Assignmer Year 3, Sept Delivery Truck GO Sept. Deprec. Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck Sept. 4-Sale Cash Accumulated Depreciation Delivery Truck Delivery Truck Gain on Sale of Delivery Truck Depreciation Expense-Delivery Truck Delivery Truck 7 Chuck tey word Expenditures that prove 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 the sale price, the asset was sold for a loss. If you no longer have the foxed 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 Dedy want Previous Email Instructor Save and Exit Submit Assemen