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 Paid 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 $90,000, 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 $16,200 and an estimated useful life of eight years. 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 $16,200 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 Jan. 4 Delivery Truck 15,360 Cash 15,360 Nov. 2 Truck Repair Expense 190 Cash 190 Dec. 31 Depreciation Expense-Delivery Truck 6,079 Accumulated Depreciation-Delivery Truck 6,079 Year 2 Jan. 6 Delivery Truck 9,000 Cash 9,000 Apr. 1-Deprec. Depreciation Expense-Delivery Truck 906 Accumulated Depreciation-Delivery Truck 906 Year 2 Jan. 6 Delivery Truck 9,000 Cash 9,000 Apr. 1-Deprec. Depreciation Expense-Delivery Truck 906 Accumulated Depreciation-Delivery Truck 906 Apr. 1-Sale Accumulated Depreciation-Delivery Truck 6,985 Cash 6,270 Gain on Sale of Delivery Truck X 2,105 Delivery Truck 8,375 X June 11 Truck Repair Expense 350 Cash 350 Dec. 31 Depreciation Expense-Delivery Truck 2,919 Accumulated Depreciation-Delivery Truck 2,919 Year 3 July 1 Delivery Truck 90,000 Cash 90,000 Dec. 31 Depreciation Expense-Delivery Truck 2,919 Accumulated Depreciation-Delivery Truck 2,919 Year 3 July 1 Delivery Truck 90,000 Cash 90,000 Oct. 2-Deprec. Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck Oct. 2-Sale Cash Accumulated Depreciation-Delivery Truck Loss on Sale of Delivery Truck IIIII 1 llll 1 Delivery Truck Dec. 31 Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck
