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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

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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 oquipment. The souble-declining-balance method of depreciation is used. Yoar 1 Jan 4, Nov. 2 Dec. 31 Purchased a used delivery truck for $26,000, paying cash. Paid garage $825 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 a residual value of $2,000 for the truck, Year 2 Jan 6. Apr 1 June 11 Dec 31 Year 3 July 1 Oct. 2 Purchased a new truck for $60.000, paying cash Sold the used truck for $14,000. (Record depreciation to date in Year 2 for the truck) Paid garage $200 for miscelaneous repairs to the truck Record depreciation for the new truck. It has an estimated residus vane of $7,000 and an estimated its of five years. 1 Purchased a new truck for $85,000, paying canh Bold the truck purchased January 6, Year 2, for 519,820. (Record depreciation to date for Year 3 for the truck) Recorded depreciation on the remaining truck. It has an estimatedronklus value of $6,000 and an estimated unetul le of eight year Dec 31 art of Accounts CHART OF ACCOUNTS Legacy Furniture Co. General Ledger ASSETS REVENUE 110 Cash 111 Petty Cash 410 Sales 610 Interest Revenue 620 Gain on Sale of Delivery Truck 621 Gain on Sale of Equipment 112 Accounts Receivable 114 Interest Receivable 115 Notes Receivable 116 Merchandise Inventory 117 Supplies 119 Prepaid Insurance EXPENSES 510 Cost of Merchandise Sold 520 Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Delivery Truck 523 Delivery Expense 525 Truck Repair and Maintenance Expense 120 Land 123 Delivery Truck 124 Accumulated Depreciation-Delivery Truck 125 Equipment Th do 126 Accumulated Depreciation-Equipment 130 Mineral Rights 131 Accumulated Depletion 132 Goodwill 133 Patents 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 LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Common Stock 311 Retained Eamings 312 Dividends Journalize the transactions and the adjusting entries. Refer to the Chart of Accounts for exact wording of account files. Scroll down to access pages 2 and 3 of the joumalDo not round intermediate calculations Joumalize the Year 1 transactions and adjusting entries on Page 1 JOURNAL ACCOUNTING EQUATION DATO DOPTION POST. REF DEBT CREDIT ASSETS LIABILITIES EQUITY 1 Adjusting Entries Joumal Journalize the Year 2 transactions and adjusting entries on Page 2 PAGE 2 JOURNAL ACCOUNTING EQUATION DATE DESCRPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY Joumalize the Year 3 transactions and adjusting entries on Page 3 PAGE 3 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES LOCITY 1 2 9 5 5 2 1 Adjusting Entries 10

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