Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I'm having trouble with the numbers and how to enter in the transactions. The following transactions adjusting entries and closing entries were completed by king

I'm having trouble with the numbers and how to enter in the transactions.
The following transactions adjusting entries and closing entries were completed by king furniture Co. during a three-year period all related to the use of delivery equipment. The double declining balance method of depreciation is used.
2014
Jan 4th : purchased a used delivery truck for $61,440 paying cash.
Feb 24: paid garage $210 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 eight years with a residual value of $12,900 for the truck.
2015
Jan 3: purchased a new truck for $70,560 paying cash
Mar 7: paid garage $430 to tune the engine and make other minor repairs on the used truck.
Apr 30: sold a used truck for $40,440 (Record depreciation to date in 2015 for the truck)
Dec 31: Record depreciation for the new truck has an estimated trade-in value of 12,700 and an estimated life of seven years.
2016
July 1: purchased a new truck for $91,000 paying cash
Oct:7 sold the truck purchased on January 3, 2015 for $41,700 (record depreciation to date in 2016 for the truck)
Dec 31: recorded depreciation on the remaining truck it has an estimated residual value of $16,400 and an estimated useful life of 10 years.
I need help with the depreciation and proper journalizing.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISE Managerial Accounting Creating Value In A Dynamic Business Environment

Authors: Ronald W. Hilton, David Platt

13th Edition

1265046794, 9781265046798

More Books

Students also viewed these Accounting questions

Question

4. Record one of your lessons to check yourself for clarity.

Answered: 1 week ago