Instructions The lolowing transactions and adjusling entries were completed by Legacy Furniture Co. during a 3-year period. All are relaled to the use of delvery equipment. The doutledeclaing balance mothod of degaceciason is used. Yeat 1 Jan. 4. Purchased a used delivery truck for $27,680, paying cash. Now. 2. Paid garage $725 for miscellaneous repairs to the truck. Dec.31. Recorded depreciation on the truck for the year. The estimated uselul life of the truek is 4 years, with a tesidual value of 54,900 for the truck. Year 2 Jan. 6. Purchased a new truck for $49,850, paying cash. Apr. 1. Bold the used inuck for $15,080. (Aecord depreciation to date in Year 2 for the truck.) June 11. Paid garage $450 for miscellaneous repais to the truck Dec 31. Aocond depreciation for the now truck. It has an estimated residual value of 50,105 and an eatimated the of 5 years. Year 3 July 1. Purchased a new tnuck for \$53.640, paying cash. Oct. 2. Sold the truck purchased Januayy 6, Year 2, for $17,607, Recond depreciation to date for Yoar 3 for the truck) Dec :31. Fecorded deprecistion on the remaining truck. It has an estimated retidual value of $12,345 and an estimaled usetul ite of 8 years. Chart of Accounts CHART OF ACCOUNTS Legacy Furniture Co. General Ledger REVENUE ASSETS 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable 620 Gain on Sale of Delivery Truck 114 Interest Receivable 621 Gain on Sale of Equipment 115 Notes Recelvable 116 Merchandise Inventory EXPENSES 117 Supplies 510 Cost of Merchandise Sold 119 Prepaid Insurance 520 Salaries Expense 120 Land 521 Advertising Expense 123 Delivery Truck 522 Depreciation Expense-Delivery Truck 124 Accumulated Depreciation-Delivery Truck 523 Delivery Expense 125 Equipment 525 Truck Repair and Maintenance Expense 126 Accumulated Depreciation-Equipment 529 Selling Expenses Instructions Chart of Accounts General Journal Chart of Accounts 126 Accumulated Depreciation-Equipment 529 Selling Expenses 130 Mineral Rights 531 Rent Expense 131 Accumulated Depletion 532 Depreciation Expense-Equipment 132 Goodwill 533 Depletion Expense 133 Patents 534 Amortization Expense-Patents 535 Insurance Expense LIABILITIES 536 Supplies Expense 210 Accounts Payable 539 Miscellaneous Expense 211 Salaries Payable 710 Interest Expense 213 Sales Tax Payable 720 Loss on Sale of Delivery Truck 214 Interest Payable 721 Loss on Sale of Equipment 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends Joumalize the transactions and the acfusting entries. Sorol down to access pages 2 and 3 of the joumal. Goosraldoumal lostructions Jounaliee the Year 1 transactions and adivefing entries on Page 1. Joumalze the Yeut 2 transactions and ad usting eneries on Page 2 Joundire the Year 3 iransections and actustang entries on Page 3
