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 a used delivery truck for $26.000, paying cash. Paid garage $825 for miscellaneous repairs to the truck. Nov. 2 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 $2,000 for the truck. Year 2 Jan. 6. Purchased new truck for $60,000, paying cash. Apr. 1 Sold the used truck for $14,000. (Record depreciation to date in Year 2 for the truck.) Paid garage $280 for miscellaneous repairs to the truck. June 11 Dec. 31. Record depreciation for the new truck. It has an estimated residual value of $7,000 and an estimated life of five years. Year 3 July 1 Purchased a new truck for $65,000, paying cash. Oct. 2 Sold the truck purchased January 6, Year 2, for $19,520. (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 $6,000 and an estimated useful life of eight years. Journalize the transactions and the adjusting entries. Refer to the Chart of Accounts for exact wording of account titles. Journalize the transactions and the adjusting entries. Refer to the Chart of Accounts for exact wording of account titles. Scroll down to access pages 2 and 3 of the journal. Do not round intermediate calculations Journalize the Year 1 transactions and adjusting entries on Page 1 How does grading work? PAGE 1 JOURNAL Score: 72/76 DATE DESCRIPTION POST. REF. DEBIT CREDIT ACCOUNTING FOLIATION ASSETS LIABILITIES EQUITY 1 Jan. 4 Delivery Truck 26,000.00 1 2 Cash 26,000.00 1 3 Nov. 2 Truck Repair and Maintenance Expense 825.00 + 4 Cash 825.00 1 5 6 Adjusting Entries Dec. 31 Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck 12.000.00 12,000.00 Journalize the Year 2 transactions and adjusting entries on Page 2 How does grading work? PAGE 2 JOURNAL Score: 138/150 DATE DESCRIPTION POST. REF. DEBIT CREDIT ACCOUNTING FOLIATION ASSETS LIABILITIES EQUITY 1 Jan. 6 Delivery Truck 60,000.00 1 2 Cash 60,000.00 3 3,000.00 > 4 Apr. 1 Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck Apr. 1 Accumulated Depreciation-Delivery Truck 3,000.00 1 5 15,000.00 1 6 Cash 14,000.00 1 7 Gain on Sale of Delivery Truck 3,000.00 8 Delivery Truck 26,000.00 9 Jun. 11 Truck Repair and Maintenance Expense 280.00 1 10 Cash 280.00 1 11 Adjusting Entries 12 Dec. 31 21,200.00 Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck 13 21,200.00 1 Journalize the Year 3 transactions and adjusting entries on Page 3 How does grading work? PAGE 3 JOURNAL Score: 110/125 DATE DESCRIPTION POST. REF. DEBIT CREDIT ACCOUNTING FOLATION ASSETS LIABILITIES EQUITY 1 Jul. 1 Delivery Truck 65,000.00 1 2 Cash 65.000.00 3 Oct. 2 Depreciation Expense-Delivery Truck 15,900.00 1 4 Accumulated Depreciation-Delivery Truck 15,900.00 1 5 Accumulated Depreciation-Delivery Truck 37,100.00 6 Cash 19,520.00 1 7 Loss on Sale of Delivery Truck 3,380.00 8 Delivery Truck 60,000.00 1 9 Adjusting Entries 10 14,750.00 1 Dec. 31 Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck 11 14,750.00
