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PLEASE HELP PLEASE HELP I'VE BEEN STUCK ON IT FOR HOURS! :( Transactions for Fixed Assets, Including Sale The following transactions and adjusting entries were
PLEASE HELP
PLEASE HELP I'VE BEEN STUCK ON IT FOR HOURS! :(
Transactions for Fixed Assets, Including Sale 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 used delivery truck for $9,600, paying cash. Nov. 2 Paid garage $200 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 $2,000 for the truck. Year 2 Jan. 6 Purchased a new truck for $6,000, paying cash. Apr. 1 Sold the used truck purchased on Jan. 4 of Year 1 for $3,900. (Record depreciation to date in Year 2 for the truck.) June 11 Paid garage $320 for miscellaneous repairs to the truck. Dec. 31 Record depreciation for the new truck. It has an estimated residual value of $1,100 and an estimated life of 5 years. Year 3 July 1 Purchased new truck for $90,000, paying cash. Oct. 2 Sold the truck purchased January 6, Year 2, for $2,320. (Record depreciation to date for Year 3 for the truck.) Dec. 31 Recorded depreciation on the remaining truck purchased on July 1. It has an estimated residual value of $16,200 and an estimated useful life of eight years. Journalize the transactions and the adjusting entries. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations. Round your final answers to the nearest cent. Year 1 Jan. 4 Delivery Truck 9,600 Cash 9,600 Nov. 2 Truck Repair Expense 200 9,600 200 4,800 Cash 200 Dec. 31 Depreciation Expense-Delivery Truck 4,800 Accumulated Depreciation-Delivery Truck 4,800 Year 2 Jan. 6 Delivery Truck 6,000 Cash 6,000 Apr. 1-Deprec. Depreciation Expense-Delivery Truck O Accumulated Depreciation-Delivery Truck Apr. 1-Sale Accumulated Depreciation-Delivery Truck Depreciation Expense-Delivery Truck Delivery Truck Cash I III IIII II June 11 Truck Repair Expense Cash Dec. 31 Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck Year 3 July 1 Delivery Truck Cash Oct. 2-Deprec. Depreciation Expense-Delivery Truck 1 1 Accumulated Depreciation-Delivery Truck Oct. 2-Sale Cash 3,900 Accumulated Depreciation-Delivery Truck Loss on Sale of Delivery Truck Delivery Truck 9,600 Dec. 31 Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery TruckStep by Step Solution
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