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The following transactions and adjusting entries were completed by Robinson 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 Robinson 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. 8. | Purchased a used delivery truck for $48,600, paying cash. |
Mar. 7. | Paid garage $160 for changing the oil, replacing the oil filter, and tuning the engine on the delivery truck. |
Dec. 31. | Recorded depreciation on the truck for the fiscal year. The estimated useful life of the truck is 9 years, with a residual value of $10,200 for the truck. |
Year 2 | |
Jan. 9. | Purchased a new truck for $55,860, paying cash. |
Feb. 28. | Paid garage $340 to tune the engine and make other minor repairs on the used truck. |
Apr. 30. | Sold the used truck for $33,600. (Record depreciation to date in Year 2 for the truck.) |
Dec. 31. | Record depreciation for the new truck. It has an estimated trade-in value of $10,100 and an estimated life of 7 years. |
Year 3 | |
Sept. 1. | Purchased a new truck for $96,000, paying cash. |
Sept. 4. | Sold the truck purchased January 9, Year 2, for $34,000. (Record depreciation to date in Year 3 for the truck.) |
Dec. 31. | Recorded depreciation on the remaining truck. It has an estimated residual value of $17,300 and an estimated useful life of 10 years. |
please help i keep getting it wrong
Apr. 30-Deprec. | Depreciation Expense-Delivery Truck | 4050 | wrong | |
Accumulated Depreciation-Delivery Truck | 4050 | wrong | ||
Apr. 30-Sale | Accumulated Depreciation-Delivery Truck | 28350 | wrong | |
Cash | 33600 | correct | ||
Loss on Sale of Delivery Truck | 13350 | wrong | ||
Delivery Truck | 48600 | correct |
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