Transactions for Fixed Assets, including Sale 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 $61,440, paying cash. Mar. 7. Paid garage $110 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 8 years, with a residual value of $12,900 for the truck. Year 2 Jan. 9. Purchased a new truck for $70,560, paying cash. Feb. 28. Paid garage $230 to tune the engine and make other minor repairs on the used truck. Apr. 30. Sold the used truck for $40,440. (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 $12,700 and an estimated life of 7 years. Year 3 Sept. 1. Purchased a new truck for $90,000, paying cash. Sept. 4. Sold the truck purchased January 9, Year 2, for $42,900. (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 $16,200 and an estimated useful life of 10 years. Required: Journalize the transactions and the adjusting entries. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations. Round your final answers to the nearest cent. Year 1, Jan. 8 Delivery Truck 61,440 Cash 61,440 Year 1, Jan. 8 Delivery Truck 61,440 Cash 61,440 Mar. 7 Truck Repair and Maintenance Expense 110 Cash 110 Dec. 31 Depreciation Expense-Delivery Truck 15,360 Accumulated Depreciation-Delivery Truck 15,360 Year 2, Jan. 9 Delivery Truck 70,560 Cash 70,560 Feb. 28 Truck Repair and Maintenance Expense 230 Cash 230 Apr. 30-Deprec. Depreciation Expense-Delivery Truck 3,840 Accumulated Depreciation-Delivery Truck 3,840 Accumulated Depreciation-Delivery Truck Apr. 30-Sale Cash Loss on Sale of Delivery Truck Delivery Truck 61,440 Dec. 31 Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck Year 3, Sept. 1 Delivery Truck 90,000 III II II II III. DOD II 16 II IIII Cash 90,000 Sept. 4-Deprec. Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck Cash Sept. 4-Sale Accumulated Depreciation-Delivery Truck Delivery Truck Gain on Sale of Delivery Truck Dec. 31 Depreciation Expense-Delivery Truck lll Accumulated Depreciation-Delivery Truck
