Instructions

Year $1$

Jan. $4.$ Purchased a used delivery truck for $$28,400,$ paying cash.

Nov. $2.$ Paid garage $$710$ for miscellaneous repairs to the truck.

Dec. $31.$ Recorded depreciation on the truck for the year. The estimated useful life of the truck is $4$ years, with a

residual value of $$4,835$ for the truck.

Year $2$

Jan. $6.$ Purchased a new truck for $$46,800,$ paying cash.

Apr. $1.$ Sold the used truck for $$15,145.($Record depreciation to date in Year $2$ for the truck.$)$

June $11.$ Paid garage $$465$ for miscellaneous repairs to the truck.

Dec. $31.$ Record depreciation for the new truck. It has an estimated residual value of $$8,560$ and an estimated

life of $5$ years.

Year $3$

July $1.$ Purchased a new truck for $$52,960,$ paying cash.

Oct. $2.$ Sold the truck purchased January $6,$ Year $2,$ for $$16,356.($Record depreciation to date for Year $3$ for the

truck.$)$

Dec. $31.$ Recorded depreciation on the remaining truck. It has an estimated residual value of $$12,375$ and an

estimated useful life of $8$ years.

Required:

Journalize the transactions and the adjusting entries. $($Three journals for each year$)$