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The following transactions and adjusting entries were completed by Legacy Furniture Co. during a three-year period. All are related to theuse of delivery equipment. The double-declining-balance method of depreciation is used.   Journalize the transactions and the adjusting entries. Refer to the Chart of Accounts for exact wording of account titles.

The following transactions and adjusting entries were completed by Legacy Furniture Co. during a three-year period. All are related to theuse of delivery equipment. The double-declining-balance method of depreciation is used.   Journalize the transactions and the adjusting entries. Refer to the Chart of Accounts for exact wording of account titles.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business
Section: Chapter Questions
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The following transactions and adjusting entries were completed by Legacy Furniture Co. during a three-year period. All are related to theuse of delivery equipment. The double-declining-balance method of depreciation is used.

 

Journalize the transactions and the adjusting entries. Refer to the Chart of Accounts for exact wording of account titles.

In Journal PAGE 1 TH rel JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 3 Adjusting Entries 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 2 4 5 9
Transcribed Image Text:In Journal PAGE 1 TH rel JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 3 Adjusting Entries 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 2 4 5 9
Instructions Chart of Accounts ASSETS REVENUE 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. 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue Year 1 112 Accounts Receivable 620 Gain on Sale of Delivery Truck Jan. 4. Purchased a used delivery truck for $27,200, paying cash. 114 Interest Receivable 621 Gain on Sale of Equipment Nov. 2. Paid garage S630 for miscellaneous repairs to the truck. 115 Notes Receivable Dec. Recorded depreciation on the truck for the year. The estimated useful life of the truck is four years, 116 Merchandise Inventory EXPENSES with a residual value of $5,005 for the truck. 31. 117 Supplies 510 Cost of Merchandise Sold Year 2 119 Prepaid Insurance 520 Salaries Expense Jan. 6 Purchased a new truck for S49,250, paying cash. 120 Land 521 Advertising Expense Apг. 1. Sold the used truck for $14,670. (Record depreciation to date in Year 2 for the truck.) 123 Delivery Truck 522 Depreciation Expense-Delivery Truck June Paid garage $450 for miscellaneous repairs to the truck. 124 Accumulated Depreciation-Delivery Truck 523 Delivery Expense 11. 125 Equipment 525 Truck Repair and Maintenance Expense Dec. Record depreciation for the new truck. It has an estimated residual value of S8,950 and an estimated 126 Accumulated Depreciation-Equipment 529 Selling Expenses 31. life of five years. 130 Mineral Rights 531 Rent Expense Year 3 131 Accumulated Depletion 532 Depreciation Expense-Equipment July 1. Purchased a new truck for $53,920, paying cash. 132 Goodwill 533 Depletion Expense Oct. 2 Sold the truck purchased January 6, Year 2, for $17,125. (Record depreciation to date for Year 3 for 133 Patents 534 Amortization Expense-Patents the truck.) 535 Insurance Expense Dec. Recorded depreciation on the remaining truck. It has an estimated residual value of $12,945 and an LIABILITIES 536 Supplies Expense 31. estimated useful life of eight years. 210 Accounts Payable 539 Miscellaneous Expense 211 Salaries Payable 710 Interest Expense 213 Sales Tax Payable 720 Loss on Sale of Delivery Truck Journalize the transactions and the adjusting entries. Refer to the Chart of Accounts for exact wording of account titles. 214 Interest Payable 721 Loss on Sale of Equipment 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends
Transcribed Image Text:Instructions Chart of Accounts ASSETS REVENUE 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. 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue Year 1 112 Accounts Receivable 620 Gain on Sale of Delivery Truck Jan. 4. Purchased a used delivery truck for $27,200, paying cash. 114 Interest Receivable 621 Gain on Sale of Equipment Nov. 2. Paid garage S630 for miscellaneous repairs to the truck. 115 Notes Receivable Dec. Recorded depreciation on the truck for the year. The estimated useful life of the truck is four years, 116 Merchandise Inventory EXPENSES with a residual value of $5,005 for the truck. 31. 117 Supplies 510 Cost of Merchandise Sold Year 2 119 Prepaid Insurance 520 Salaries Expense Jan. 6 Purchased a new truck for S49,250, paying cash. 120 Land 521 Advertising Expense Apг. 1. Sold the used truck for $14,670. (Record depreciation to date in Year 2 for the truck.) 123 Delivery Truck 522 Depreciation Expense-Delivery Truck June Paid garage $450 for miscellaneous repairs to the truck. 124 Accumulated Depreciation-Delivery Truck 523 Delivery Expense 11. 125 Equipment 525 Truck Repair and Maintenance Expense Dec. Record depreciation for the new truck. It has an estimated residual value of S8,950 and an estimated 126 Accumulated Depreciation-Equipment 529 Selling Expenses 31. life of five years. 130 Mineral Rights 531 Rent Expense Year 3 131 Accumulated Depletion 532 Depreciation Expense-Equipment July 1. Purchased a new truck for $53,920, paying cash. 132 Goodwill 533 Depletion Expense Oct. 2 Sold the truck purchased January 6, Year 2, for $17,125. (Record depreciation to date for Year 3 for 133 Patents 534 Amortization Expense-Patents the truck.) 535 Insurance Expense Dec. Recorded depreciation on the remaining truck. It has an estimated residual value of $12,945 and an LIABILITIES 536 Supplies Expense 31. estimated useful life of eight years. 210 Accounts Payable 539 Miscellaneous Expense 211 Salaries Payable 710 Interest Expense 213 Sales Tax Payable 720 Loss on Sale of Delivery Truck Journalize the transactions and the adjusting entries. Refer to the Chart of Accounts for exact wording of account titles. 214 Interest Payable 721 Loss on Sale of Equipment 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends
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