In: Accounting
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 $27,200, paying cash. |
Nov. 2. | Paid garage $630 for miscellaneous repairs to the truck. |
Dec. 31. | Recorded depreciation on the truck for the year. The estimated useful life of the truck is four years, with a residual value of $5,005 for the truck. |
Year 2 | |
Jan. 6. | Purchased a new truck for $49,250, paying cash. |
Apr. 1. | Sold the used truck for $14,670. (Record depreciation to date in Year 2 for the truck.) |
June 11. | Paid garage $450 for miscellaneous repairs to the truck. |
Dec. 31. | Record depreciation for the new truck. It has an estimated residual value of $8,950 and an estimated life of five years. |
Year 3 | |
July 1. | Purchased a new truck for $53,920, paying cash. |
Oct. 2. | Sold the truck purchased January 6, Year 2, for $17,125. (Record depreciation to date for Year 3 for the truck.) |
Dec. 31. | Recorded depreciation on the remaining truck. It has an estimated residual value of $12,945 and an estimated useful life of eight years. |
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Journalize the transactions and the adjusting entries. Refer to the Chart of Accounts for exact wording of account titles. Scroll down to access pages 2 and 3 of the journal. Do not round intermediate calculations.
Journalize the Year 1 transactions and adjusting entries on Page 1.
PAGE 1
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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Adjusting Entries |
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Journalize the Year 2 transactions and adjusting entries on Page 2.
PAGE 2
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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Adjusting Entries |
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Journalize the Year 3 transactions and adjusting entries on Page 3.
PAGE 3
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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Adjusting Entries |
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year 1 | |||||||||
4-Jan | Delivery Truck | 27,200 | |||||||
Cash | 27,200 | ||||||||
2-Nov | Truck repair expense | 630 | |||||||
Cash | 630 | ||||||||
31-Dec | Depreciation expense -Delivery Truck | 13600 | |||||||
Accumulated depreciation-Delivery Truck | 13600 | ||||||||
year 2 | |||||||||
6-Jan | Delivery Truck | 49,250 | |||||||
cash | 49,250 | ||||||||
1-Apr | Depreciation expense -Delivery Truck | 1700 | |||||||
Accumulated depreciation-Delivery Truck | 1,700 | ||||||||
1-Apr | Accumulated depreciation-Delivery Truck | 15300 | |||||||
Cash | 14,670 | ||||||||
Gain on sale of Delivery truck | 2,770 | ||||||||
Delivery Truck | 27,200 | ||||||||
11-Jun | Truck repair expense | 450 | |||||||
Cash | 450 | ||||||||
31-Dec | Depreciation expense -Delivery Truck | 19700 | |||||||
Accumulated depreciation-Delivery Truck | 19700 | ||||||||
year 3 | |||||||||
1-Jul | Delivery Truck | 53,920 | |||||||
cash | 53,920 | ||||||||
2-Oct | Depreciation expense -Delivery Truck | 8865 | |||||||
Accumulated depreciation-Delivery Truck | 8865 | ||||||||
2-Oct | Cash | 17,125 | |||||||
Accumulated depreciation-Delivery Truck | 28565 | ||||||||
loss on sale of Delivery truck | 3,560 | ||||||||
Delivery Truck | 49,250 | ||||||||
31-Dec | Depreciation expense -Delivery Truck | 6740 | |||||||
Accumulated depreciation-Delivery Truck | 6,740 | ||||||||
Related SolutionsThe following transactions and adjusting entries were completed by Legacy Furniture Co. during a three-year period.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 $180 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...
The following transactions and adjusting entries were completed by Legacy Furniture Co. during a three-year period....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 $28,000, paying cash. Nov. 2 Paid garage $675
for miscellaneous repairs to the truck. Dec. 31 Recorded
depreciation on the truck for the year. The estimated useful life
of the truck is four years, with a residual value...
The following transactions and adjusting entries were completed by Legacy Furniture Co. during a three-year period....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 $27,680, paying cash.
Nov. 2
Paid garage $725 for miscellaneous repairs to the truck.
Dec. 31
Recorded depreciation on the truck for the year. The estimated
useful life of the truck is four years, with a residual value...
The following transactions and adjusting entries were completed by Legacy Furniture Co. during a three-year period....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 $28,000, paying cash.
Nov. 2.
Paid garage $635 for miscellaneous repairs to the truck.
Dec. 31.
Recorded depreciation on the truck for the year. The estimated
useful life of the truck is four years, with a residual value...
The following transactions and adjusting entries were completed by Legacy Furniture Co. during a three-year period....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. 1/1/2018 Purchased a used delivery
truck for $28,000, paying cash. 4/15/2018 Paid garage $675 for
miscellaneous repairs to the truck. 12/31/2018 Recorded
depreciation on the truck for the year. The estimated useful life
of the truck is four years, with a residual value of $5,000 for the
truck....
The following transactions and adjusting entries were completed by Legacy Furniture Co. during a three-year period....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 $27,200, paying cash.
Nov. 2.
Paid garage $630 for miscellaneous repairs to the truck.
Dec. 31.
Recorded depreciation on the truck for the year. The estimated
useful life of the truck is four years, with a residual value...
The following transactions and adjusting entries were completed by Legacy Furniture Co. during a three-year period....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 $28,000, paying cash. Nov. 2 Paid garage $635
for miscellaneous repairs to the truck. Dec. 31 Recorded
depreciation on the truck for the year. The estimated useful life
of the truck is four years, with a residual value...
The following transactions and adjusting entries were completed by Legacy Furniture Co. during a three-year period....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 $26,960, paying cash.
Nov. 2.
Paid garage $600 for miscellaneous repairs to the truck.
Dec. 31.
Recorded depreciation on the truck for the year. The estimated
useful life of the truck is four years, with a residual value...
The following transactions and adjusting entries were completed by Legacy Furniture Co. during a three-year period....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. 1/1/2018 Purchased a used delivery
truck for $28,000, paying cash. 4/15/2018 Paid garage $675 for
miscellaneous repairs to the truck. 12/31/2018 Recorded
depreciation on the truck for the year. The estimated useful life
of the truck is four years, with a residual value of $5,000 for the
truck....
The following transactions and adjusting entries were completed by Legacy Furniture Co. during a three-year period....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 $26,960, paying cash. Nov. 2 Paid garage $600
for miscellaneous repairs to the truck. Dec. 31 Recorded
depreciation on the truck for the year. The estimated useful life
of the truck is four years, with a residual value...
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