Transactions for Fbxed 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 dellvery equipment. The double-declining-balance method of depreciation is used. Year 1 Jan. 4 Purchased a used dellvery truck for $9,600, paying cash. Nov. 2 Paid garage $220 for miscellaneous repairs to the truck. Dec. 31 Recorded depreciation on the truck for the year. The estimated useful iffe 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 depreclation to date in Year 2 for the truck.) June 11 Paid garage $440 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 $88,000, paying cash, Oct. 2 sold the truck purchased January 6, Year 2 , for $2,320. (Record depreclation 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 $15,800 and an estimated useful life of eight years. Required: Journalize the transactions and the adjusting entries, If an amount box does not require on entry, leave it blank. Do not round Journalize the transactions and the adjusting entries. If an amount box does not require an entry, leave it blank. Do not round Delivery Truck June 11 Truck Repair Excense v Cash Dec. 31 Depreciation Expense-Delivery Truck Accumulated Depreciation-Dellyery Truck Year 3 July 1 Dellivery Truck Oct. 2-Sale Cash v Accumulated Depreciation-Delivery Truck * Loss on Sale of Delivery Truck Dellvery Truck Dec, 31 Depreciation Expense-Dellyery Truck v Acsumulated Deoreciation-Delivery Truafs \& TCheck. My Work Expenditures that improve the asset are recorded as increases to the fixed asset. Expenditures that are ordinary maintenance and repairs are expensed. Pay attention to the dates fixed assets were purchased and/or sold. Compare the book value amount to the sale price. If the book value is less than the sale price, the asset was soid for a gain. if the book value is more than the sale price, the equipment was sold for a loss. If you no longer have the fixed asset what accounts Would have to be eliminated? In the first year, the balance in the accumulated depreciation account is zero. Remember not to reduce book value below residual value