structions Jan. 4 Nov. 2 Purchased a used delivery truck for $29,200, paying cash. Paid garage $650 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 $4,505 for the truck. Year 2 Jan. 6 Apr. 1 Purchased a new truck for $49,900, paying cash. Sold the used truck purchased on Jan. 4 of Year 1 for $15,710. (Record depreciation to date in Year 2 for the truck.) June 11 Paid garage $495 for miscellaneous repairs to the truck. Dec. 31 Recorded depreciation for the new truck. It has an estimated residual value of $8,790 and an estimated life of five years. Year 3 July 1 Oct. 2 Purchased a new truck for $55,320, paying cash. Sold the truck purchased January 6, Year 2, for $17,708. (Record depreciation to date for Year 3 for the truck.) Recorded depreciation on the remaining truck purchased on July 1. It has an estimated residual value of $11,715 and an estimated useful life of eight years. Dec. 31 General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable REVENUE 410 Sales 610 Interest Revenue 620 Gain on Sale of Delivery Truck 621 Gain on Sale of Equipment 114 Interest Receivable 115 Notes Receivable 116 Merchandise Inventory 117 Supplies 119 Prepaid Insurance 120 Land 123 Delivery Truck 124 Accumulated Depreciation-Delivery Truck 125 Equipment 126 Accumulated Depreciation Equipment 130 Mineral Rights 131 Accumulated Depletion 132 Goodwill EXPENSES 510 Cost of Merchandise Sold 520 Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Delivery Truck 523 Delivery Expense 525 Truck Repair Expense 529 Selling Expenses 531 Rent Expense 532 Depreciation Expense-Equipment 533 Depletion Expense 133 Patents 534 Amortization Expense-Patents 535 Insurance Expense LIABILITIES 536 Supplies Expense 539 Miscellaneous Expense 210 Accounts Payable 211 Salaries Payable 710 Interest Expense 213 Sales Tax Payable 720 Loss on Sale of Delivery Truck 721 Loss on Sale of Equipment 214 Interest Payable 215 Notes Payable EQUITY 310 Owner's Capital 311 Owner's Drawing Journalize the Year 1 transactions and adjusting entries on Page 1 PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Adjusting Entries Journalize the Year 2 transactions and adjusting entries on Page 2 PAGE 2 JOURNAL ACCOUNTING EQUATION DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Adjusting Entries PAGE 3 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Adjusting Entries
