Transactions for fixed assets, including sale Instructions Chart of Accounts Journal Instructions The following transactions and adjusting entries were completed by Legacy Furniture Co. during 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 $26,000, paying cash. Nov. 2 Paid garage $825 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 $2,000 for the truck. Year 2 Jan. 6 Purchased a new truck for $60,000, paying cash. Apr. 1 June 11. Sold the used truck for $14,000. (Record depreciation to date Year 2 for the truck.) Paid garage $280 for miscellaneous repairs to the truck. Record depreciation for the new truck. It has an estimated residual value of $7,000 and an estimated Dec. 31 life of five years. Year 3 Purchased a new truck for $65,000, paying cash. July 1 Oct. 2. Sold the truck purchased January 6, Year 2, for $19,520. (Record depreciation to date for Year 3 for the truck.) Dec. 31 Recorded depreciation on the remaining truck. It has an estimated residual value of $6,000 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. Journalize the Year 2 transactions and adjusting entries on Page 2 How does grading work? PAGE 2 JOURNAL Score: 119/150 ACCOUNTING EQUATION DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY DATE Jan. 6 Delivery Truck 1 60,000.00 1 2 Cash 60,000.00 + 3 3 Apr. 1 Depreciation Expense-Delivery Truck 4 Accumulated Depreciation-Delivery Truck Apr. 1 Accumulated Depreciation-Delivery Truck 5 6 Cash 14,000.00 7 7 Delivery Truck 8 Gain on Sale of Delivery Truck 9 Jun. 11 Truck Repair and Maintenance Expense 280.00 1 10 Cash 280.00 1 11 Adjusting Entries Dec 31 Depreciation Expense-Delivery Truck 12 13 Accumulated Depreciation-Delivery Truck Journalize the Year 3 transactions and adjusting entries on Page 3 How does grading work? PAGE 3 JOURNAL Score: 81/125 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Jul. 1 Delivery Truck 2 Cash 3 Oct. 2 Depreciation Expense-Delivery Truck 4 Accumulated Depreciation-Delivery Truck 5 Oct.2 Cash 6 Accumulated Depreciation-Delivery Truck Loss on Sale of Delivery Truck 7 8 Delivery Truck 9 10 Adjusting Entries Dec 31 Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck 11