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 $190 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 $86,000, 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 $15,500 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. Cash Accumulated Depreciation-Delivery Truck Sept. 4-Sale Dec. 31

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 $190 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 $86,000, 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 $15,500 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. Cash Accumulated Depreciation-Delivery Truck Sept. 4-Sale Dec. 31

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 2AP

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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 $190 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 $86,000, 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 $15,500 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.	Cash
	Accumulated Depreciation-Delivery Truck
Sept. 4-Sale



Dec. 31

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