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Need help finding the last depreciation expense. Transactions for Fixed Assets, Including Sale The following transactions and adjusting entries were completed by Robinson Furniture Co.
Need help finding the last depreciation expense.
Transactions for Fixed Assets, Including Sale The following transactions and adjusting entries were completed by Robinson 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. 8. Purchased a used delivery truck for $29,400, paying cash. Mar. 7. Paid garage $200 for changing the oil, replacing the oil filter, and tuning the engine on the delivery truck. Dec. 31. Recorded depreciation on the truck for the fiscal year. The estimated useful life of the truck is 7 years, with a residual value of $6,200 for the truck. Year 2 Jan. 9. Purchased a new truck for $53,460, paying cash. Feb. 28. Paid garage $270 to tune the engine and make other minor repairs on the used truck. Apr. 30. Sold the used truck for $18,150. (Record depreciation to date in Year 2 for the truck.) Dec. 31. Record depreciation for the new truck. It has an estimated trade-in value of $9,600 and an estimated life of 9 years. Year 3 Sept. 1. Purchased a new truck for $94,000, paying cash. Sept. 4. Sold the truck purchased January 9, Year 2, for $37,020. (Record depreciation to date in Year 3 for the truck.) Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $16,900 and an estimated useful life of 10 years. Required: 850 Loss on Sale of Delivery Truck Delivery Truck 29,400 Dec. 31 11,880 Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck 11,880 94,000 Year 3, Sept. 1 Delivery Truck Cash 94,000 6,160 Sept. 4-Deprec. Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck 6,160 Sept. 4-Sale 37,020 Cash Accumulated Depreciation-Delivery Truck Delivery Truck 18,040 53,460 Gain on Sale of Delivery Truck 1,600 Dec. 31 7,710 Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck 9,400Step by Step Solution
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