Question
Hello, Please, review the wrong cases below and correct them if possible. This is the 2nd time I am submitting this question. Transactions for Fixed
Hello,
Please, review the wrong cases below and correct them if possible. This is the 2nd time I am submitting this question.
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.
2012 | |
Jan. 4. | Purchased a used delivery truck for $48,600, paying cash. |
Feb. 24. | 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 $10,200 for the truck. |
2013 | |
Jan. 3. | Purchased a new truck for $55,860, paying cash. |
Mar. 7. | Paid garage $350 to tune the engine and make other minor repairs on the used truck. |
Apr. 30. | Sold the used truck for $33,600. (Record depreciation to date in 2013 for the truck.) |
Dec. 31. | Record depreciation for the new truck. It has an estimated trade-in value of $10,100 and an estimated life of 7 years. |
2014 | |
July 1. | Purchased a new truck for $96,000, paying cash. |
Oct. 7. | Sold the truck purchased January 3, 2013, for $33,050. (Record depreciation to date in 2014 for the truck.) |
Dec. 31. | Recorded depreciation on the remaining truck. It has an estimated residual value of $17,300 and an estimated useful life of 10 years. |
Journalize the transactions and the adjusting entries. For a compound transaction, if an amount box does not require an entry, leave it blank. Do not round intermediate calculations.
2012 Jan. 4 Delivery Truck Cash Truck Repair Expense Feb. 24 Cash Dec. 31 Depreciation Expense-Deliver! Accumulated Depreciation-Del 2013 Jan. 3 Cash Mar. 7 Truck Repair Expense Cash Apr. 30-Deprec. Depreciation Expense-Delivery Accumulated Depreciation-Del 48,600 110 4267 55,860 350 1422 48,600 110 4267 55,860 350 1422
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