Transactions forFixed 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. Thedouble-declining-balance methodofdepreciationis used.

Year 1Jan. 4 Purchased a used delivery truck for $15,360, paying cash.Nov. 2 Paid garage $170 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 2Jan. 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 $420 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 3July 1 Purchased a new truck for $94,000, 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 $16,900 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

Nov. 2

Dec. 31

Year 2 Jan. 6

Apr. 1-Deprec.

Apr. 1-Sale

June 11

Dec. 31

Year 3 July 1

Oct. 2-Deprec.

Oct. 2-Sale

Dec. 31