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 $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.
Year 2
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 Year 2 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.
Year 3
July 1.	Purchased a new truck for $55,400, paying cash.
Oct. 2.	Sold the truck purchased January 6, Year 2, for $17,498. (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 $12,955 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.

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ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
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2
3
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5		Adjusting Entries
6
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Journalize the Year 2 transactions and adjusting entries on Page 2.

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	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
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2
3
4
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9
10
11		Adjusting Entries
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Journalize the Year 3 transactions and adjusting entries on Page 3.

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JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6
7
8
9		Adjusting Entries
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