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 $230 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 $420 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 $85,000, 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 $15,300 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 Cash Mar 7 Truck Repair Expense Cash Dec 31 Depreciation Expense Delivery Truck Accumulated Depreciation Delivery Truck Year 2 Jan 9 Delivery Truck Cash Feb 28 Truck Repair Expense Cash Apr 30 Deprec Depreciation Expense Delivery Truck Accumulated Depreciation Delivery Truck Apr 30 Sale Accumulated Depreciation Delivery Truck Cash Loss on Sale of Delivery Truck Delivery Truck Dec 31 Depreciation Expense Delivery Truck Accumulated Depreciation Delivery Truck Year 3 Sept 1 Delivery Truck Cash Sept 4 Deprec Depreciation Expense Delivery Truck Accumulated Depreciation Delivery Truck Sept 4 Sale Cash Accumulated Depreciation Delivery Truck Delivery Truck Gain on Sale of Delivery Truck Dec 31 Depreciation Expense Delivery Truck Accumulated Depreciation Delivery Truck

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 03, 2024

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

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 $230 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 $420 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 $85,000, 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 $15,300 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. 8Delivery Truck Cash Mar. 7Truck Repair Expense Cash Dec. 31Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck Year 2 Jan. 9Delivery Truck Cash Feb. 28Truck Repair Expense Cash Apr. 30-Deprec.Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck Apr. 30-SaleAccumulated Depreciation-Delivery Truck Cash Loss on Sale of Delivery Truck Delivery Truck Dec. 31Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck Year 3 Sept. 1Delivery Truck Cash Sept. 4-Deprec.Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck Sept. 4-SaleCash Accumulated Depreciation-Delivery Truck Delivery Truck Gain on Sale of Delivery Truck Dec. 31Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck