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.

Required:

JoCHART OF ACCOUNTS

Legacy Furniture Co$.$

General Ledger

ASSETS

$110$ Cash

$111$ Petty Cash

$112$ Accounts Receivable

$114$ Interest Receivable

$115$ Notes Receivable

$116$ Merchandise Inventory

$117$ Supplies

$119$ Prepaid Insurance

$120$ Land

$123$ Delivery Truck

$124$ Accumulated Depreciation$-$Delivery Truck

$125$ Equipment

$126$ Accumulated Depreciation$-$Equipment

$130$ Mineral Rights

$131$ Accumulated Depletion

$132$ Goodwill

$133$ Patents

LIABILITIES

$210$ Accounts Payable

$211$ Salaries Payable

$213$ Sales Tax Payable

$214$ Interest Payable

$215$ Notes Payable

EQUITY

$310$ Common Stock

$311$ Retained Earnings

$312$ Dividends

REVENUE

$410$ Sales

$610$ Interest Revenue

$620$ Gain on Sale of Delivery Truck

$621$ Gain on Sale of Equipment

EXPENSES

$510$ Cost of Merchandise Sold

$520$ Salaries Expense

$521$ Advertising Expense

$522$ Depreciation Expense$-$Delivery Truck

$523$ Delivery Expense

$525$ Truck Repair and Maintenance Expense

$529$ Selling Expenses

$531$ Rent Expense

$532$ Depreciation Expense$-$Equipment

$533$ Depletion Expense

$534$ Amortization Expense$-$Patents

$535$ Insurance Expense

$536$ Supplies Expense

$539$ Miscellaneous Expense

$710$ Interest Expense

$720$ Loss on Sale of Delivery Truck

$721$ Loss on Sale of Equipment

Journalize the transactions and the adjusting entries. Scroll down to access pages $2$ and $3$ of the journal.

General Journal Instructions

Journalize the Year $1$ transactions and adjusting entries on Page $1.$

All transactions on this page must be entered $($except for post ref$($s$))$ before you will receive Check My Work feedback.

PAGE $1$

JOURNALACCOUNTING EQUATION

Score: $39/76$

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EJournalize the transactions and the adjusting entries. Scroll down to access pages $2$ and $3$ of the journal.

General Journal Instructions

Journalize the Year $1$ transactions and adjusting entries on Page $1.$

All transactions on this page must be entered $($except for post ref$($s$))$ before you will receive Check My Work feedback.

PAGE $1$

JOURNALACCOUNTING EQUATION

Score: $39/76$

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

$32,000\mathrm{.}00$

Cash

$32,000\mathrm{.}00$

$$

$950\mathrm{.}00$

$950\mathrm{.}00$

$5$

Adjusting Entries

$16,000\mathrm{.}00$

$16,000\mathrm{.}00$

Points:

$7\mathrm{.}7/15$

Journalize the Year $2$ transactions and adjusting entries on Page $2.$

All transactions on this page must be entered $($except for post ref$($s$))$ before you will receive Check My Work feedback.

PAGE $2$

JOURNALACCOUNTING EQUATION

Score: $54/150$

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

Cash

$80,000\mathrm{.}00$

$$

accumulated depreciation

$80,000\mathrm{.}00$

gain on sale

$2,000\mathrm{.}00$

$2,000\mathrm{.}00$

$16,000\mathrm{.}00$

$18,000\mathrm{.}00$

$2,000\mathrm{.}00$

$32,000\mathrm{.}00$

$11$

Adjusting Entries

$310\mathrm{.}00$

$310\mathrm{.}00$

Points:

$10\mathrm{.}44/29$

Journalize the Year $3$ transactions and adjusting entries on Page $3.$

All transactions on this page must be entered $($except for post ref$($s$))$ before you will receive Check My Work feedback.

PAGE $3$

JOURNALACCOUNTING EQUATION

Score: $55/125$

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

truck

$85,000\mathrm{.}00$

Cash

$85,000\mathrm{.}00$

$$

$14,400\mathrm{.}00$

$14,000\mathrm{.}00$

$18,250\mathrm{.}00$

$46,400\mathrm{.}00$

$15,350\mathrm{.}00$

$80,000\mathrm{.}00$

$9$

Adjusting Entries

depreciation expense

$10,625\mathrm{.}00$

accumulated depreciation

$106,252\mathrm{.}00$QUITY