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-declining-balance method of depreciation is used. Year 1 Jan. 4 Purchased a used delivery truck for $9,600, paying cash. Nov. 2 Paid garage 5240 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 $240 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. t . Year 3 July 1 Purchased a new truck for $96,000, paying cash. Oct. 2 Sold the truck purchased January 6, Year 2, for $2,320. (Record depreciation to date for Year 3 for the truck.) 2$. ( Dec. 31 Recorded depreciation on the remaining truck purchased on July 1. It has an estimated residual value of $17,300 and an estimated useful life of eight 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 Delivery Truck 9,600 Jan. 4 Cash 9.600 Nov. 2 Truck Repair Expense 240 Cash 240 Dec. 31 Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck Year 2 Jan. 6 Delivery Truck 6,000 Cash 6,000 3,900 Apr. 1-Deprec. Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck 3,900 X Year 2 Jan. 6 6,000 Delivery Truck Cash 6,000 3,900 3,900 X Apr. 1-Sale Apr. 1-Deprec. Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck Accumulated Depreciation-Delivery Truck Cash Loss on Sale of Delivery Truck Delivery Truck 240 X X X June 11 > Truck Repair Expense Cash Dec. 31 X Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck Year 3 July 1 > Delivery Truck Cash X Oct. 2-Deprec. Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck Oct. 2-Sale X X Cash Accumulated Depreciation-Delivery Truck Loss on Sale of Delivery Truck Delivery Truck X Dec. 31 Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck X >
