Legacy Furniture Co. General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 114 Interest...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Legacy Furniture Co. General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 114 Interest Receivable 115 Notes Receivable 116 Merchandise Inventory 117 Supplies 119 Prepaid Insurance 120 Land 123 Delivery Truck 124 Accumulated Depreciation-Delivery Truck 125 Equipment 126 Accumulated Depreciation-Equipment 130 Mineral Rights 131 Accumulated Depletion 132 Goodwill 133 Patents REVENUE 410 Sales 610 Interest Revenue 620 Gain on Sale of Delivery Truck 621 Gain on Sale of Equipment EXPENSES 510 Cost of Merchandise Sold 520 Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Delivery Truck 523 Delivery Expense 525 Truck Repair Expense LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable 529 Selling Expenses 531 Rent Expense 532 Depreciation Expense-Equipment 533 Depletion Expense 534 Amortization Expense-Patents 535 Insurance Expense 536 Supplies Expense 539 Miscellaneous Expense 710 Interest Expense 720 Loss on Sale of Delivery Truck 721 Loss on Sale of Equipment EQUITY 310 Owner's Capital 311 Owner's Drawing 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 $29,200, paying cash. Nov. 2 Paid garage $650 for miscellaneous repairs to the truck. Dec. 31 Year 2 Jan. 6 Apr. 1 June 11 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 $4,505 for the truck. Purchased a new truck for $49,900, paying cash. Sold the used truck purchased on January 4 of Year 1 for $15,710. (Record depreciation to date in Year 2 for the truck.) Paid garage $495 for miscellaneous repairs to the truck. Recorded depreciation for the new truck. It has an estimated residual value of $8,790 and an estimated life of five years. Year 3 July 1 Oct. 2 Dec. 31 Required: Purchased a new truck for $55,320, paying cash. Sold the truck purchased January 6, Year 2, for $17,708. (Record depreciation to date for Year 3 for the truck.) Recorded depreciation on the remaining truck purchased on July 1. It has an estimated residual value of $11,715 and an estimated useful life of eight years. Journalize the transactions and the adjusting entries. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Legacy Furniture Co. General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 114 Interest Receivable 115 Notes Receivable 116 Merchandise Inventory 117 Supplies 119 Prepaid Insurance 120 Land 123 Delivery Truck 124 Accumulated Depreciation-Delivery Truck 125 Equipment 126 Accumulated Depreciation-Equipment 130 Mineral Rights 131 Accumulated Depletion 132 Goodwill 133 Patents REVENUE 410 Sales 610 Interest Revenue 620 Gain on Sale of Delivery Truck 621 Gain on Sale of Equipment EXPENSES 510 Cost of Merchandise Sold 520 Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Delivery Truck 523 Delivery Expense 525 Truck Repair Expense LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable 529 Selling Expenses 531 Rent Expense 532 Depreciation Expense-Equipment 533 Depletion Expense 534 Amortization Expense-Patents 535 Insurance Expense 536 Supplies Expense 539 Miscellaneous Expense 710 Interest Expense 720 Loss on Sale of Delivery Truck 721 Loss on Sale of Equipment EQUITY 310 Owner's Capital 311 Owner's Drawing 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 $29,200, paying cash. Nov. 2 Paid garage $650 for miscellaneous repairs to the truck. Dec. 31 Year 2 Jan. 6 Apr. 1 June 11 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 $4,505 for the truck. Purchased a new truck for $49,900, paying cash. Sold the used truck purchased on January 4 of Year 1 for $15,710. (Record depreciation to date in Year 2 for the truck.) Paid garage $495 for miscellaneous repairs to the truck. Recorded depreciation for the new truck. It has an estimated residual value of $8,790 and an estimated life of five years. Year 3 July 1 Oct. 2 Dec. 31 Required: Purchased a new truck for $55,320, paying cash. Sold the truck purchased January 6, Year 2, for $17,708. (Record depreciation to date for Year 3 for the truck.) Recorded depreciation on the remaining truck purchased on July 1. It has an estimated residual value of $11,715 and an estimated useful life of eight years. Journalize the transactions and the adjusting entries. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
Expert Answer:
Answer rating: 100% (QA)
The General Ledger provided contains various accounts categorized into Assets Liabilities Revenue Expenses and Equity Each account represents a specific type of financial transaction or item related t... View the full answer
Related Book For
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
Students also viewed these finance questions
-
4.16 12345678 9 10 11 12 13 What does the following program print? // Exercise 4.16: Mystery.java public class Mystery { public static void main(String[] args) { int x = -2; int total = 0; mail...
-
You have just been hired as the accountant for Fan-Tastic Sports Gear, a wholesaler of sporting goods and apparel. The previous accountant left abruptly, and an accounting intern has been drafting...
-
Select the best answer. 1. A local chapter of the Society for Protection of the Environment beneted from the voluntary services of two attorneys. One served as a member of the Society's board of...
-
What is the pH of a solution that is 2.5 ( 10-9 in NaOH? Does your answer make sense? What assumption do we normally make that is not valid in this case?
-
Describe the current global business trend wherein countries are reducing trade between themselves to develop capabilities/supply chains in their own country. Provide 3 examples of companies or...
-
Fitted Values. Let \(\left.\widehat{y}_{i}=\pi\left(\mathbf{x}_{i}^{\prime} \mathbf{b}_{M L E} ight) ight)\) denote the \(i\) th fitted value for the logit function. Assume that an intercept is used...
-
Johnny Fuller owns and manages Johnnys Restaurant, a 24-hour restaurant near the citys medical complex. Johnny employs 9 full-time employees and 16 part-time employees. He pays all of the full-time...
-
ducksRus sells a duck call having a contribution margin of $5. The president foresees sales up to 100,000 units in the coming period. The company's fixed costs for the period are $275,000. a. What is...
-
Compute f de using the appropriate substitution.
-
DaimlerChryslers product portfolio ranges from small cars to sports cars and luxury sedans; and from versatile vans to trucks and coaches. Daimler- Chryslers passenger car brands include Maybach,...
-
Account for the apparent mismatch between the rationale for strategic recruitment and selection and the paucity of evidence of its practice.
-
Alvin Conley has been a partner in a large accounting partnership for twenty-five years. This year, he decided to retire. Although Alvin's share of partnership capital is only \(\$ 100,000\), the...
-
Metal Corporation owns all of the stock of Iron Corporation, and owns 100 shares of Steel Corporation, which has 1,000 shares of stock outstanding. The 100 shares of Steel were purchased by Metal in...
-
An individual files an income tax return for the calendar-year 2017 on September 20, 2018, and pays $1,200, which is the balance of the tax due. Disregarding interest, how much in delinquency...
-
About this project The goal of this research project is to allow you to explore tax issues related to organizations. General information Go to the United States Tax Court, http://www.ustaxcourt.gov...
-
What are the two methods used to translate financial statements and how does the functional currency play a role in determining which method is used?
-
Distinguish between a heat engine, a heat pump, and a refrigerator.
-
Sketch and explain split air conditioner?
-
With a neat sketch of a room air-conditioner, explain its working principle.
Study smarter with the SolutionInn App