Question
I'm have some of this jornolized but not all can anyone help me out? This is the question. I've tried so much but can't get
I'm have some of this jornolized but not all can anyone help me out? This is the question. I've tried so much but can't get them all right. Thank You to anyone that can help me out.
The following transactions and adjusting entries were completed by Legacy 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. 4. | Purchased a used delivery truck for $27,680, paying cash. |
| Nov. 2. | Paid garage $725 for miscellaneous repairs to the truck. |
| Dec. 31. | Recorded depreciation on the truck for the year. The estimated useful life of the truck is four years, with a residual value of $4,900 for the truck. |
| Year 2 | |
| Jan. 6. | Purchased a new truck for $49,850, paying cash. |
| Apr. 1. | Sold the used truck for $15,050. (Record depreciation to date in Year 2 for the truck.) |
| June 11. | Paid garage $450 for miscellaneous repairs to the truck. |
| Dec. 31. | Record depreciation for the new truck. It has an estimated residual value of $9,185 and an estimated life of five years. |
| Year 3 | |
| July 1. | Purchased a new truck for $53,640, paying cash. |
| Oct. 2. | Sold the truck purchased January 6, Year 2, for $17,607. (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 $12,345 and an estimated useful life of eight years. |
First Year
| Delivery Truck | 49850 | |||
| Cash | 49850 | |||
| Truck Repair Expense | 15050 | |||
| Cash | 15050 | |||
| ||||
| Depreciation Expense-Delivery Truck | 11390 | |||
| Accumulated Depreciation-Delivery Truck | 11390 |
Second Year
| Jan 6 | Delivery Truck | 49850 | |||
| Cash | 49850 | ||||
| Apr 1 | Cash | 15050 | |||
| Delivery Truck | 15050 | ||||
| Jun. 11 | Truck Repair Expense | 450 | |||
| Cash | 450 | ||||
| Apr 1 | Depreciation Expense-Delivery Truck | ||||
| Accumulated Depreciation-Delivery Truck | |||||
| Depreciation Expense-Delivery Truck | |||||
| Depreciation Expense-Delivery Truck | |||||
| Dec 31 |
| ||||
| Depreciation Expense-Delivery Truck | |||||
| Accumulated Depreciation-Delivery Truck |
Third Year
| Jul 1 | Delivery Truck | 53640 | |||
| Cash | 53640 | ||||
| Oct 3 | Cash | 17607 | |||
| Delivery Truck | 17607 | ||||
| Dec 31 | Loss on Sale of Delivery Truck | ||||
| Accumulated Depreciation-Delivery Truck | |||||
| Dec 31 | Accumulated Depletion | ||||
| Accumulated Depreciation-Delivery Truck | |||||
| |||||
| Dec 31 | Gain on Sale of Delivery Truck | ||||
| Accumulated Depreciation-Delivery Truck |
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Internal Control A Managers Journey
Authors: K. H. Spencer Pickett
1st Edition
0471402508, 978-0471402503
