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PLEASE USE CHARTS I PROVIDED! The following transactions and adjusting entries were completed by Legacy Furniture...
PLEASE USE CHARTS I PROVIDED!
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. |
Journalize the Year 1 transactions and adjusting entries on Page 1.
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ACCOUNTING EQUATION
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Journalize the Year 2 transactions and adjusting entries on Page 2.
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Journalize the Year 3 transactions and adjusting entries on Page 3.
PAGE 3
JOURNAL
ACCOUNTING EQUATION
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Solutions
Expert Solution
| Date | Descrption | Post Ref | Debit | Credit | Asset | Liabilities | Equity |
| Jan-01 | Delivery Truck | $27200 | Increase | ||||
| Cash | $27200 | Decrease | |||||
| Nov-02 | Truck Repair Expense | $630 | Decrease | ||||
| Cash | $630 | Decrease | |||||
| Dec-31 | Depreciation on Truck | $13600 | Decrease | ||||
| Accumulated Depreciation on Truck | $13600 | Decrease | |||||
| 27200x1/4x2= 13600 | |||||||
| Jan-06 | Delivery Truck | $49250 | Increase | ||||
| Cash | $49250 | Decrease | |||||
| Apr-01 | Depreciation On Truck | $1700 | Decrease | ||||
| Accumulated Depreciation on Truck | $1700 | Decrease | |||||
| 27200-13600= [13600x(1/4x2)x3/12] | |||||||
| Here Book value is 13600 and depreciation is taking for 3 months. | |||||||
| Accumulated Depreciation On Truck | $15300 | Increase | |||||
| Cash | $14670 | Increase | |||||
| Delivery Truck | $27200 | Decrease | |||||
| Gain on Sales of Delivery Truck | $2770 | Increase | |||||
| Jun-11 | Truck Repair Expense | $450 | Decrease | ||||
| Cash | $450 | Decrease | |||||
| Dec-31 | Depreciation On truck | $19700 | Decrease | ||||
| Accumulated Depreciation On truck | $19700 | Decrease | |||||
| 49250x 1/5x 2 | |||||||
| Jul-01 | Delivery Truck | $53920 | Increase | ||||
| Cash | $53920 | Decrease | |||||
| Oct-02 | Depreciation on Truck | $8865 | Decrease | ||||
| Accumulated Depreciation on Truck | $8865 | Decrease | |||||
| 49250-19700=29550x1/5x2x9/12 | |||||||
| Accumulated Depreciation on Truck | $28565 | Increase | |||||
| Cash | $17125 | Increase | |||||
| Loss on sale of Truck | $3560 | Decrease | |||||
| Delivery Truck | $49250 | Decrease | |||||
| Dec-31 | Depreciation Expense on Truck | $6740 | Decrease | ||||
| Accumulated Depreciation On Truck | $6740 | Decrease | |||||
| [53920x(1/8x2) x(6/12)] |
| Jan-01 | Purchased a used delivery truck for $27,200, paying cash. |
| Delivery Truck Asset Increased and Cash Asset Decreased | |
| Nov-02 | Paid garage $630 for miscellaneous repairs to the truck. |
| Repair Expense affect in net income so equity will be decreased, Cash Asset Decreased | |
| 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. |
| Depreciation is an expense and it decrease equity, accumulated depreciation will affect delivery truck asset value and it is treated as decrease in asset | |
| Jan-06 | Purchased a new truck for $49,250, paying cash. |
| Delivery Truck Asset Increased and Cash Asset Decreased | |
| Apr-01 | Sold the used truck for $14,670. (Record depreciation to date in Year 2 for the truck.) |
| when recording depreciation expense accumulated depreciation considered as a decrease in asset. But when truck sells accumulatd depreciation asset is increasing, cash asset in creasing , delivery truck asset is decreasing, and also gain on sale of asset will make a increase in equity | |
| Jun-11 | Paid garage $450 for miscellaneous repairs to the truck. |
| Repair Expense affect in net income so equity will be decreased, Cash Asset Decreased | |
| Dec-31 | Record depreciation for the new truck. It has an estimated residual value of $8,950 and an estimated life of five years. |
 ekkarill92 answered 1 year agoRelated SolutionsThe following transactions, adjusting entries, and closing entries were completed by Legacy Furniture Co. during a...The following transactions, adjusting entries, and closing
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. 2014 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...
The following transactions, adjusting entries, and closing entries were completed by Legacy Furniture Co. during a...The following transactions, adjusting entries, and closing
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.
2014
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...
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 $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 $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. 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...
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