The following transactions and adjusting entries were completed by Legacy Furniture Co. during a 3-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 $32,000, paying cash.

Nov. 2. Paid garage $950 for miscellaneous repairs to the truck.

Dec. 31. Recorded depreciation on the truck for the year. The estimated useful life of the truck is 4 years, with a residual value of $2,000 for the truck.

Year 2

Jan. 6. Purchased a new truck for $80,000, paying cash.

Apr. 1. Sold the used truck for $16,000. (Record depreciation to date in Year 2 for the truck.)

June 11. Paid garage $310 for miscellaneous repairs to the truck.

Dec. 31. Record depreciation for the new truck. It has an estimated residual value of $7,000 and an estimated life of 5 years.

Year 3

July 1. Purchased a new truck for $85,000, paying cash.

Oct. 2. Sold the truck purchased January 6, Year 2, for $18,250. (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 8 years.

Instructions Journalize the transactions and the adjusting entries.