Instructions 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 Nov. 2 Purchased a used delivery truck for $28,000, paying cash, Paid garage 5675 for miscellaneous repairs to the truck Recorded depreciation on the truck for the year. The estimated useful life of the truck is four years, with o residus We Of $5,000 for the truck Dec 31 Year 2 Jano Apt 1 Purchased a new truck for $48.000. paying cash. sold the used truck purchased on January 4 of Year 1 for $15,000 (Record depreciation to date in Year 2 for the truck Paid garage $450 for miscellaneous repairs to the truck Record depreciation for the new truck. It has an estimated residual value of $9,000 and an estimated We of five years June 11 Dec 31 Year 3 July 1 Oct.2 Purchased a new truck for $54.000, paying cash Sold the truck purchased January 6, Your 2. 107 $16.750 (Record depreciation to date for Yoar 3 for the truck) Recorded depreciation on the remaining truck purchased on Juy 1 it has an esmated residual value Dec 31 1. July 1 a Oct 2 Purchased a new truck for $54,000, paying cash. Sold the truck purchased January 6, Year 2, for $16,750. (Record depreciation to date for Year 3 for the truck.) Recorded depreciation on the remaining truck purchased on July 1. It has an estimated residunt value of $12,000 and an estimated useful life of eight years, Dec. 31 Required: Joumalize the transactions and the adjusting entries. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debut or credit entries. CNOW journals will automatically indert a credit entry when a credit amount is entered. a w CHART OF ACCOUNTS Legacy Furniture Co. General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable 620 Gain on Sale of Delivery Truck 621 Gain on Sale of Equipment EXPENSES 510 Cost of Merchandise Sold 114 Interest Receivable 115 Notes Receivable 116 Merchandise Inventory 117 Supplies 119 Prepaid Insurance 120 Land 123 Delivery Truck 124 Accumulated Depreciation-Delivery Truck 125 Equipment 126 Accumulated Depreciation-Equipment 130 Mineral Rights 520 Salaries Expense 521 Advertising Expense 522 Depreciation Expense Delivery Truck 523 Delivery Expense 525 Truck Repair Expense 529 Selling Expenses 531 Rent Expense 131 Accumulated Depletion 532 Depreciation Expense-Equipment InChart of Accounts 120 Land 123 Delivery Truck 124 Accumulated Depreciation-Delivery Truck 125 Equipment 126 Accumulated Depreciation-Equipment 130 Mineral Rights 131 Accumulated Depletion 132 Goodwill 521 Advertising Expense 522 Depreciation Expense-Delivery Truck 523 Delivery Expense 525 Truck Repair Expense 529 Selling Expenses 531 Rent Expense 532 Depreciation Expense-Equipment 533 Depletion Expense 534 Amortization Expense-Patents 535 Insurance Expense 536 Supplies Expense 539 Miscellaneous Expense 710 Interest Expense 720 Loss on Sale of Delivery Truck 721 Loss on Sale of Equipment 133 Patents LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Owner's Capital 311 Owner's Drawing Journa soumalize the transactions and the adjusting entries. Scroll down to access pages 2 and 3 of the journal Refer to the chart of accounts for the exact wording of the accountilles CNOW oumais do not use lines for journal explanations. Every line on a joumal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered Jourrimize the Year 1 transactions and adjusting entries on Page 1 PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 1 Adjusting Entries Journal Journalize the Year 2 transactions and adjusting entries on Page 2 PAGE 2 JOURNAL ACCOUNTING EQUATION DESCRIPTION DERIT POST. REF. CREDIT DATE LIABILITIES ASSETS EQUITY 1 2 3 4 5 10 1 Adjusting Entries 12 11 HE Journalize the Year 3 transactions and adjusting entries on Page 3 PAGE) JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 2 3 4 6 7 1 Adjusting Entries 30 11
