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Transactions for Fixed Assets, including 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 $24,000, paying cash Mar. 7. Poid garage $900 for changing the oll, replacing the oil filter, and tuning the engine on the delivery truck 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 Dec. 31. truck, Year 2 Jan. 9. Purchased a new truck for $50,000, paying cash Feb. 28. Paid garage $250 to tune the engine and make other minor repairs on the used truck. Apr. 30. Sold the used truck for $9,500. (Record depreciation to date in Year 2 for the truck.) Dec. 31. Record depreciation for the new truck. It has an estimated residual value of $12,000 and an estimated life of eight years. Year 3 Sept. 1. Purchased a new truck for $58,500, paying cash Sept. 4. Sold the truck purchased January 9, Year 2 for $36,000. (Record depreciation to date for Year 3 for the truck.) Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $16,000 and an estimated useful life of 10 years, Journalize the transactions and the adjusting entries. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations Year 1, Jan. 8 Delivery Truck 24,000 Cash 24,000 Mar. 7 Truck Repair and Maintenance Expense Cash 900 900 Dec 31 Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck 12,450 X 12.450 X 50,000 Year 2, Jan. 9 Delivery Truck Cash 50,000 Feb. 28 Truck Repair and Maintenance Expense 250 > Cash 250 Apr. 30 Deprec. Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck 9,500 X 2,075 X Apr. 30 Sale 375,000 X Accumulated Depreciation-Delivery Truck Cash Loss on Sale of Delivery Truck Delivery Truck 4,750 X Dec. 31 58,500 X Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck 2,929 X Year 3, Sept. 1 Delivery Truck 58,500 Cash 58,500 > Sept. 4 Sale Cash Accumulated Depreciation-Delivery Truck Delivery Truck Gain on Sale of Delivery Truck III Dec. 31 Depreciation Expense-Delivery Truck 58,500 X Accumulated Depreciation-Delivery Truck 2,925 X