Lundquist, Inc., uses the group depreciation method for its furniture account. The depreciation rate used for furniture is 21%. The balance in the furniture account on December 31, 2010, was $125,000, and the balance in Accumulated Depreciation'Furniture was $61,000. The following purchases and dispositions of furniture occurred in the years 2011–2013 (assume that all purchases and disposals occurred at the beginning of each year).

1. Prepare the summary journal entries Lundquist should make each year (2011–2013) for the purchase, disposition, and depreciation of the furniture.
2. Prepare a summary of the furniture and accumulated depreciation accounts for the years2011–2013.

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Assets Sold Year Assets Purchased-Cost (Cash) Cost Selling Price (Cash) 201 2012... 2013 $35,000 27.600 24,500 $27,000 15,000 32,000 $8,000 6,000 8,000