Question
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 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 $28,400, paying cash. |
Nov. 2 | Paid garage $710 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 $4,835 for the truck. |
Year 2 | |
Jan. 6 | Purchased a new truck for $46,800, paying cash. |
Apr. 1 | Sold the used truck purchased on Jan. 4 of Year 1 for $15,145. (Record depreciation to date in Year 2 for the truck.) |
June 11 | Paid garage $465 for miscellaneous repairs to the truck. |
Dec. 31 | Recorded depreciation for the new truck. It has an estimated residual value of $8,560 and an estimated life of five years. |
Year 3 | |
July 1 | Purchased a new truck for $52,960, paying cash. |
Oct. 2 | Sold the truck purchased January 6, Year 2, for $16,356. (Record depreciation to date for Year 3 for the truck.) |
Dec. 31 | Recorded depreciation on the remaining truck purchased on July 1. It has an estimated residual value of $12,375 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.
Chart of Accounts
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legacy Furniture Co. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Journal
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.
Journalize the Year 1 transactions and adjusting entries on Page 1.
PAGE 1
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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Journalize the Year 2 transactions and adjusting entries on Page 2.
PAGE 2
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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Journalize the Year 3 transactions and adjusting entries on Page 3.
PAGE 3
JOURNAL
ACCOUNTING EQUATION
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