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Instructions (This is all one question, please answer the following.) The following transactions, adjusting entries, and closing entries were completed by Legacy Furniture Co. during
Instructions (This is all one question, please answer the following.)
The following transactions, adjusting entries, and closing 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.
2014 | |
Jan. 4. | Purchased a used delivery truck for $27,200, paying cash. |
Nov. 2. | Paid garage $630 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 $5,005 for the truck. |
2015 | |
Jan. 6. | Purchased a new truck for $49,250, paying cash. |
Apr. 1. | Sold the used truck for $14,670. (Record depreciation to date in 2015 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 $8,950 and an estimated life of five years. |
2016 | |
July 1. | Purchased a new truck for $53,920, paying cash. |
Oct. 2. | Sold the truck purchased January 6, 2015, for $17,125. (Record depreciation to date for 2016 for the truck.) |
Dec. 31. | Recorded depreciation on the remaining truck. It has an estimated residual value of $12,945 and an estimated useful life of eight years. |
Journalize the transactions and the adjusting entries. Refer to the Chart of Accounts for exact wording of account titles. Be sure to include the YEAR in the date for the FIRST transaction on each page.
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Legacy Furniture Co. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Journalize the transactions and the adjusting entries. Refer to the Chart of Accounts for exact wording of account titles. Scroll down to access pages 2 and 3 of the journal. Be sure to include the YEAR in the date for the FIRST transaction on each page. Journalize the 2014 transactions and adjusting entries on Page 1. Be sure to include the YEAR in the date for the FIRST transaction PAGE JOURNAL DATE DESCRIPTION POST REF CREDIT Adjusting Entries
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