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 $28,400, paying cash.Nov. 2.Paid garage $710 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 $4,835 for the truck.Year 2 Jan. 6.Purchased a new truck for $46,800, paying cash.Apr. 1.Sold the used truck for $15,145. (Record depreciation to date in Year 2 for the truck.)June 11.Paid garage $465 for miscellaneous repairs to the truck.Dec. 31.Record depreciation for the new truck. It has an estimated residual value of $8,560 and an estimated life of five years.Year 3 July 1.Purchased a new truck for $52,960, paying cash.Oct. 2.Sold the truck purchased January 6, Year 2, for $16,356. (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 $12,375 and an estimated useful life of eight years. Journalize the transactions and the adjusting entries. Refer to the Chart of Accounts for exact wording of account titles.

Name: The following transactions and adjusting entries were completed by Leg
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Description: 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

Disposal of Assets: Disposal is an activity of selling the worn-out assets that is no longer in need…

Answered: Journalize the transactions and the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 the use of delivery equipment. The double-declining-balance method of depreciation is used.

Year 1
Jan. 4.	Purchased a used delivery truck for $28,400, paying cash.
Nov. 2.	Paid garage $710 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 $4,835 for the truck.
Year 2
Jan. 6.	Purchased a new truck for $46,800, paying cash.
Apr. 1.	Sold the used truck for $15,145. (Record depreciation to date in Year 2 for the truck.)
June 11.	Paid garage $465 for miscellaneous repairs to the truck.
Dec. 31.	Record depreciation for the new truck. It has an estimated residual value of $8,560 and an estimated life of five years.
Year 3
July 1.	Purchased a new truck for $52,960, paying cash.
Oct. 2.	Sold the truck purchased January 6, Year 2, for $16,356. (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 $12,375 and an estimated useful life of eight years.

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

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