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 $15,360, paying cash. Nov. 2 Paid garage $190 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 $3,200 for the truck. Year 2 Jan. 6 Purchased a new truck for $9,000, paying cash. Apr. 1 Sold the used truck purchased on Jan. 4 of Year 1 for $6,270. (Record depreciation to date in Year 2 for the truck.) June 11 Pald garage $350 for miscellaneous repairs to the truck. Dec. 31 Record depreciation for the new truck. It has an estimated residual value of $1,600 and an estimated life of 5 years. Year 3 July 1 Purchased a new truck for $91,000, paying cash Oct. 2 Sold the truck purchased January 6, Year 2, for $3,480. (Record depreciation 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 $16,400 and an estimated useful life of eight years. Apr. 1-Sale Accumulated Depreciation-Delivery Truck Delivery Truck x 15,360 X Loss on Sale of Delivery Truck 1111 Cash x June 11 Truck Repair Expense 350 Cash 350 Dec. 31 Depreciation Expense-Delivery Truck 3,600 Accumulated Depreciation Delivery Truck 3,600 Year 3 July 1 Delivery Truck 91.000 Cash 91.000 Oct. 2-Deprec. Depreciation Expense-Delivery Truck 26,220 X Delivery Truck x 26,220 X Oct. 2-Sale Cash Accumulated Depreciation-Delivery Truck Loss on Sale of Delivery Truck 3,600 X Delivery Truck 15,360 X Dec. 31 Depreciation Expense-Delivery Truck 11,375 Accumulated Depreciation-Delivery Truck 11,375