The following transactions, adjusting entries, and closing 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.

*Can you please explain how you got your answers and/or provide the formulas as well? Thank you:)

2014 Jan. 4. Purchased a used delivery truck for $28,000, paying cash.

Nov. 2. Paid garage $635 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 $4,640 for the truck.

2015 Jan. 6. Purchased a new truck for $49,400, paying cash.

Apr. 1. Sold the used truck for $15,180. (Record depreciation to date in 2015 for the truck.)

June 11. Paid garage $470 for miscellaneous repairs to the truck.

Dec. 31. Record depreciation for the new truck. It has an estimated residual value of $9,470 and an estimated life of five years.

2016 July 1. Purchased a new truck for $55,400, paying cash.

Oct. 2. Sold the truck purchased January 6, 2015, for $17,498. (Record depreciation to date for 2016 for the truck.)

Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $12,955 and an estimated useful life of eight years.