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PR 9-5A Transactions for fixed assets, including sale The following transactions, adjusting entries, and closing entries were completed by D. Hurd Furniture Co. during a

PR 9-5A Transactions for fixed assets, including sale The following transactions, adjusting entries, and closing entries were completed by D. Hurd 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. 2010 Jan. 9. Purchased a used delivery truck for $30,000, paying cash. Mar. 17. Paid garage $400 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 $6,000 for the truck. 2011 Jan. 2. Purchased a new truck for $48,000, paying cash. Aug. 1. Sold the used truck for $12,500. (Record depreciation to date in 2011 for the truck.) Sept. 23. Paid garage $325 for miscellaneous repairs to the truck. Dec. 31. Record depreciation for the new truck. It has an estimated residual value of $11,000 and an estimated life of ve years. 2012 July 1. Purchased a new truck for $52,000, paying cash. Oct. 2. Sold the truck purchased January 2, 2011, for $17,000. (Record depreciation for the year.) Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $14,000 and an estimated useful life of eight years. Instructions Journalize the transactions and the adjusting entries image text in transcribed

Sheet1 D. Hurd Furniture ,, ,, Company,, Detail Report,, 12/31/12,, ,, Field,Student Data,, General Ledger Accounts Cash ,"91,225.00 Cr","correct" Accounts Receivable ,"54,000.00 Dr","correct" Merchandise Inventory ,"125,000.00 Dr","correct" Delivery Equipment ,"50,000.00 Dr","incorrect" Accum. Dep.--Delivery Eq. ,"9,680.00 Cr","incorrect" Accounts Payable ,"34,000.00 Cr","correct" Notes Payable ,"79,500.00 Cr","correct" Sissy O'Neal, Capital ,"75,000.00 Cr","correct" Sissy O'Neal, Drawing ,"23,000.00 Dr","correct" Income Summary ,"0.00","correct" Sales ,"335,000.00 Cr","correct" Cost of Goods Sold ,"100,000.00 Dr","correct" Salaries Expense ,"75,000.00 Dr","correct" Advertising Expense ,"30,000.00 Dr","correct" Rent Expense ,"60,000.00 Dr","correct" Utitities Expense ,"32,000.00 Dr","correct" Depr. Exp.--Delivery Eq. ,"53,260.00 Dr","incorrect" Truck Repair Expense ,"725.00 Dr","correct" Miscellaneous Expense ,"8,000.00 Dr","correct" Interest Revenue ,"4,000.00 Cr","correct" Gain on Sale of Equipment ,"0.00","incorrect" Interest Expense ,"1,000.00 Dr","correct" Loss on Sale of Equipment ,"16,420.00 Dr","incorrect" Bank Reconciliation Bank Reconciliation Bank Credit,"0","correct" Bank Reconciliation Bank Credit," ","correct" Bank Reconciliation Bank Charge,"0","correct" Bank Reconciliation Bank Charge,"0","correct" Bank Reconciliation Bank Charge,"0","correct" Bank Reconciliation Bank Charge," ","correct" Bank Reconciliation Outstanding Dep.,"0","correct" Bank Reconciliation Outstanding Dep.,"0","correct" Bank Reconciliation Outstanding Dep.,"0","correct" Bank Reconciliation Outstanding Dep.,"0","correct" Bank Reconciliation Outstanding Dep.,"0","correct" Bank Reconciliation Outstanding Dep.,"0","correct" Bank Reconciliation Outstanding Dep.,"0","correct" Bank Reconciliation Outstanding Dep.," ","correct" Bank Reconciliation Bank Balance,"0","correct" Customization Business Organization ,"Sole Prop.","correct" Type of Business ,"Merch./CGS","correct" Departments Code ,"One Dept.","correct" ,, Items Checked = 41,, Errors Found = 5,, Extra Items = 0,, Missing Items = 0,, Minutes File Was Open = 1,, Page 1 Sheet1 D. Hurd Furniture ,, ,, Company,, Detail Report,, 12/31/12,, ,, Field,Student Data,, General Ledger Accounts Cash ,"91,225.00 Cr","correct" Accounts Receivable ,"54,000.00 Dr","correct" Merchandise Inventory ,"125,000.00 Dr","correct" Delivery Equipment ,"50,000.00 Dr","incorrect" Accum. Dep.--Delivery Eq. ,"9,680.00 Cr","incorrect" Accounts Payable ,"34,000.00 Cr","correct" Notes Payable ,"79,500.00 Cr","correct" Sissy O'Neal, Capital ,"75,000.00 Cr","correct" Sissy O'Neal, Drawing ,"23,000.00 Dr","correct" Income Summary ,"0.00","correct" Sales ,"335,000.00 Cr","correct" Cost of Goods Sold ,"100,000.00 Dr","correct" Salaries Expense ,"75,000.00 Dr","correct" Advertising Expense ,"30,000.00 Dr","correct" Rent Expense ,"60,000.00 Dr","correct" Utitities Expense ,"32,000.00 Dr","correct" Depr. Exp.--Delivery Eq. ,"53,260.00 Dr","incorrect" Truck Repair Expense ,"725.00 Dr","correct" Miscellaneous Expense ,"8,000.00 Dr","correct" Interest Revenue ,"4,000.00 Cr","correct" Gain on Sale of Equipment ,"0.00","incorrect" Interest Expense ,"1,000.00 Dr","correct" Loss on Sale of Equipment ,"16,420.00 Dr","incorrect" Bank Reconciliation Bank Reconciliation Bank Credit,"0","correct" Bank Reconciliation Bank Credit," ","correct" Bank Reconciliation Bank Charge,"0","correct" Bank Reconciliation Bank Charge,"0","correct" Bank Reconciliation Bank Charge,"0","correct" Bank Reconciliation Bank Charge," ","correct" Bank Reconciliation Outstanding Dep.,"0","correct" Bank Reconciliation Outstanding Dep.,"0","correct" Bank Reconciliation Outstanding Dep.,"0","correct" Bank Reconciliation Outstanding Dep.,"0","correct" Bank Reconciliation Outstanding Dep.,"0","correct" Bank Reconciliation Outstanding Dep.,"0","correct" Bank Reconciliation Outstanding Dep.,"0","correct" Bank Reconciliation Outstanding Dep.," ","correct" Bank Reconciliation Bank Balance,"0","correct" Customization Business Organization ,"Sole Prop.","correct" Type of Business ,"Merch./CGS","correct" Departments Code ,"One Dept.","correct" ,, Items Checked = 41,, Errors Found = 5,, Extra Items = 0,, Missing Items = 0,, Minutes File Was Open = 1,, Page 1