Business
AccountingCorporate Financial AccountingTransactions for fixed 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. The double-declining- balance method of depreciation is used. Year 2 Jan. 6. Purchased a new truck for $48,000, paying cash. Apr. 1. Sold the used truck for $15,000. (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 $9,000 and an estimated life of five years. Year 3 July 1. Purchased a new truck for $54,000, paying cash. Oct. 2. Sold the truck purchased January 6, Year 2, for $ 16,750. (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 $12,000 and an estimated useful life of eight years. Instructions Journalize the transactions and the adjusting entries.Transactions for fixed 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. The double-declining- balance method of depreciation is used. Year 2 Jan. 6. Purchased a new truck for $48,000, paying cash. Apr. 1. Sold the used truck for $15,000. (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 $9,000 and an estimated life of five years. Year 3 July 1. Purchased a new truck for $54,000, paying cash. Oct. 2. Sold the truck purchased January 6, Year 2, for $ 16,750. (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 $12,000 and an estimated useful life of eight years. Instructions Journalize the transactions and the adjusting entries.
BuyFindlaunch
Corporate Financial Accounting
14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781305653535
BuyFindlaunch
Corporate Financial Accounting
14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781305653535
Solutions
Chapter
Section
Chapter 9, Problem 9.5APR
Textbook Problem
Transactions for fixed 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. The double-declining- balance method of depreciation is used.
| Year 2 | |
| Jan. 6. | Purchased a new truck for $48,000, paying cash. |
| Apr. 1. | Sold the used truck for $15,000. (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 $9,000 and an estimated life of five years. |
| Year 3 | |
| July 1. | Purchased a new truck for $54,000, paying cash. |
| Oct. 2. | Sold the truck purchased January 6, Year 2, for $ 16,750. (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 $12,000 and an estimated useful life of eight years. |
Instructions
Journalize the transactions and the adjusting entries.
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Corporate Financial Accounting
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