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this is all one question just a long one. Transactions for Fixed Assets, Including Sale The following transactions and adjusting entries were completed by Legacy
this is all one question just a long one.
Transactions for Fixed Assets, Including Sale 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-dedining-balance method of depreciation is used. Year 1 Jan. 4 Purchased a used delivery truck for $9,600, paying cash. Nov. 2 Paid garage $180 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 $6,000, paying cash. Apr. 1 Sold the used truck purchased on January 4 of Year 1 for $3,900. (Record depreciation to date in Year 2 for the truck.) June 11 Paid garage $230 for miscellaneous repairs to the truck. Dec. 31 Record depreciation for the new truck. It has an estimated residual value of $1,100 and an estimated life of 5 years. Year 3 July 1 Purchased a new truck for $90,000, paying cash. Oct. 2 Sold the truck purchased January 6, Year 2 , for $2,320. (Record depreciation to date for year 3 for the trucki) Dec. 31 Recorded depreciation on the remaining truck purchased on July 1. It has an estimated residual value of $16,200 and an estimated useful life of eight years. Required: Journalize the transactions and the adjusting entries. If an amount box does not requife an entry, leave it blank. Do not round intermediate Journalize the transactions and the adiustinn ontrian . ount box does not require an entry, leave it blank. Do not round intermediate int. Apr. 1-Sale Jutte 11 Dec. 31 June 11 Dec. 31 Year 3 July 1 Oct. 2-Deprec. Oct. 2-Sale Dec, 31 Step by Step Solution
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