Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Organisation Shadow Side Audit

Authors: W Tate

1st Edition

1902433971, 978-1902433974

More Books

Students also viewed these Accounting questions