Chapter 09 Problems eBook Print Item Transactions for Fixed Assets, Including Sale The following transactions and adjusting entries were completed by Robinson Fumiture 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 $77,760, paying cash. Mar. 7. Paid garage 5170 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 9 years, with a residual value of $16,300 for the truck, Year 2 Jan. 9. Purchased a new truck for $88,200, paying cash. Feb. 28. Paid garage 5210 to tune the engine and make other minor repairs on the used truck. Apr. 30. Sold the used truck for $53,750. (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 $15,900 and an estimated life of 7 years. Year 3 Sept. 1. Purchased a new truck for $78,000, paying cash. Sept. 4. Sold the truck purchased January 9, Year 2, for 553,600. (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 $14,000 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 77,760 Cash 77,760 Mar. 7 170 Truck Repair and Maintenance Expense Cash 170 Dec. 31 17,280 Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck 17,280 Year 2, Jan. 9 Delivery Truck 18,200 Cash 88,200 Feb. 28 210 Truck Repair and Maintenance Expense Cash Apr. 30-Deprec. Depreciation Expense-Delivery Truck Accumulated Depreciation-Delivery Truck O O O 01 011 1 11 IB II II.1 II II Apr 30 Sale Accumulated Depreciation-Delivery Truck Cash Loss on Sale of Delivery Truck Delivery Truck Dec. 31 Year 3, Sept. 1 Sept. 4-Deprec. Sept. 4-Sale Dec. 31 Feedback Check My Work Previous Assignment Score: 82.14% All work saved. Email Instructor Save and Exit Submit Assignment for Grading