Financial and Managerial Accounting 12

Chapter 9 PR 9-5B Pg 446-447

PR 9-5B Transactions fixed assets, including sale OBJ. 1, 2, 3, The following transactions, a and closing entries were Robinson Furniture Co. a three-year period. All are related to the use of delivery equipment. The double-declining-balance method of depreciation is used. 2012 Jan. 8. Purchased a used delivery truck for s24,000, paying cash. Mar. 7. Paid garage $900 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 four years, with a residual value of $4,000 for the truck 2013 Jan. 9. Purchased a new truck for $50,000, paying cash. repairs on the used Feb. 28. Paid garage $250 to tune the engine and make other minor truck. to date in 2013 for the Apr. 30. Sold the used truck for $9,500. (Record depreciation truck. truck. has an estimated residual value of Dec. 31. Record depreciation for the new years. $12,000 and an estimated life of eight