Perform the following fixed asset transaction exercises.

1. Read the following case and make the corresponding transactions and adjustment entries:At Caribe Music, a company dedicated to the sale of music equipment, there have been the following transactions and adjustments in the past two years.Transactions are related to the use of shipping equipment.The depreciation method was the double declining balance.

First Year	Transaction
6 Feb	A used delivery truck was purchased for cash for $ 35,000.
7 Jul	$ 700 was paid for truck repairs.
31 Dec	Record the depreciation of the truck for the calendar year.The truck had a useful life of 3 years.The truck had a residual of $ 4,500.
2nd Year
8 Jan	A new truck was purchased for cash for $ 52,000.
10 Jun	Maintenance and repairs were performed on the truck for $ 625.
9 Jul	$ 300 was paid for repairs to the used truck that was purchased in the first year.
19 Sep	The truck that was purchased in the first year was sold for $ 20,000.Record the depreciation as of the date the truck is sold.
31 Dec	Record the depreciation of the truck purchased the second year.The truck has a useful life of 5 years.The truck has a residual of $ 7,200.

Answer rating: 100% (QA)

Journal entries Date Account Description Ref Debit Credit Firtst Year Feb 6 Truck 1 35000 Cash 35000 ... View the full answer