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.

year 1 Jan. 4. Purchased a used delivery truck for $29,200, paying cash. Nov. 2. 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. Purchased a new truck for $49,000, paying cash. Apr. 1. 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. Record 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. Purchased a new truck for $55,320, paying cash. Oct. 2. Sold the truck purchased January 6, Year 2, for $17,708. (Record depreciation to date for year 3 for the truck.) Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $11,715 and an estimated useful life of eight years.

Instructions

Journalize the transactions and the adjusting entries. chart of accounts

ctions mart of Accounts CHART OF ACCOUNTS Legacy Furniture Co. General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable 114 Interest Receivable 620 Gain on Sale of Delivery Truck 621 Gain on Sale of Equipment 115 Notes Receivable Chart of Accounts 114 Interest Receivable 621 Gain on Sale of Equipment 115 Notes Receivable EXPENSES 116 Merchandise Inventory 117 Supplies 119 Prepaid Insurance 510 Cost of Merchandise Sold 520 Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Delivery Truck 523 Delivery Expense 120 Land 123 Delivery Truck 124 Accumulated Depreciation-Delivery Truck 525 Truck Repair Expense 125 Equipment 529 Selling Expenses 126 Accumulated Depreciation-Equipment 531 Rent Expense 130 Mineral Rights 532 Danteciation Expencement