Instructions X 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 Purchased a used delivery truck for $28,000, paying cash. Nov. 2 Dec. 31 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 a residual value of $5,000 for the truck Year 2 Jan 6 Purchased a new truck for $48,000 paying cash. Sold the used truck purchased on Jan 4 of Year 1 for $15,000 (Record depreciation to date in Year 2 Apr. 1 for the truck) June 11 Dec. 31 Paid garage $450 for miscellaneous repairs to the truck Record depreciation for the new truck. It has an estimated residual value of S9 000 and an estimated life of five years Year 3 July 1 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 Oct 2 truck.) Dec 31 Recorded depreciation on the remaining truck purchased on July 1 It has an estimated residual value of $12,000 and an estimated useful life of eight years, Journalize the transactions and the adiustina entries. Refer to the Chart of Accounts for exact wording of account titles Joumalze the Year 2 transactions and adjusting entries on Page 2 PAGE 2 JOURNAL DATE DESCRIPTION POST REF DELIT CREDIT ACCOUNTING DATION ASSETS LISSITIES EOLITY 1 2 3 A $ 10 Adjusting Entries Journalize the Year 3 transactions and adjusting entries on Page 3 Journaize the Year 1 transactions and adjusting entries on Page 1 1 PAGE 1 JOURNAL DATE DESCRIPTION POSTRO DELIT CREDIT ACCOUNTING CONATION ASSETS LIABILITIES COUITY Adjusting Entries Journalize the Year 2 transactions and adjusting entries on Page 2 Joumalize the Year 3 transactions and adjusting entries on Page 3 PAGO JOURNAL ACCOUNTING COLATION ASSETS LABILITIES POSTRE DOIT CREDIT DESCRIPTION EQUITY DATE 1 2 Adjusting Entries ad My Work ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable 620 Gain on Sale of Delivery 114 Interest Receivable Truck 115 Notes Receivable 621 Gain on Sale of Equipment 116 Merchandise Inventory 117 Supplies EXPENSES 119 Prepaid Insurance 510 Cost of Merchandise Sold 120 Land 520 Salaries Expense 123 Delivery Truck 521 Advertising Expense 124 Accumulated Depreciation- 522 Depreciation Expense- Delivery Truck Delivery Truck 125 Equipment 523 Delivery Expense 126 Accumulated Depreciation- Equipment 525 Truck Repair Expense 529 Selling expenses 130 Mineral Rights 531 Rent Expense 131 Accumulated Depletion 532 Depreciation Expense- Equipment 132 Goodwill 133 Patents 533 Depletion Expense 534 Amortization Expense- LIABILITIES Patents 210 Accounts Payable 535 Insurance Expense Chart of Accounts 119 Prepaid Insurance 510 Cost of Merchandise Sold 120 Land 520 Salaries Expense 521 Advertising Expense 123 Delivery Truck 124 Accumulated Depreciation- Delivery Truck 522 Depreciation Expense Delivery Truck 125 Equipment 523 Delivery Expense 126 Accumulated Depreciation- 525 Truck Repair Expense Equipment 529 Selling Expenses 130 Mineral Rights 531 Rent Expense 131 Accumulated Depletion 532 Depreciation Expense. Equipment 132 Goodwill 133 Patents 533 Depletion Expense 534 Amortization Expense- LIABILITIES Patents 210 Accounts Payable 535 Insurance Expense 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 536 Supplies Expense 539 Miscellaneous Expense 710 Interest Expense 215 Notes Payable 720 Loss on Sale of Delivery Truck 721 Loss on Sale of Equipment EQUITY 310 Owner's Capital 311 Owner's Drawing
