The following transactions, adjusting entries, and closing entries were completed by Robinson 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.

2012

Jan. 8. Purchased a used delivery truck for $24,000, paying cash.

Mar. 7. Paid garage $900 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 four years, with a residual value of $4,000 for the truck.

2013

Jan. 9. Purchased a new truck for $50,000, paying cash.

Feb. 28. Paid garage $250 to tune the engine and make other minor repairs on the used truck.

Apr. 30. Sold the used truck for $9,500. (Record depreciation to date in 2013 for the truck.) Dec. 31. Record depreciation for the new truck. It has an estimated residual value of $12,000 and an estimated life of eight years.

2014

Sept. 1. Purchased a new truck for $58,500, paying cash.

4. Sold the truck purchased January 9, 2013, for $36,000. (Record depreciation to date for 2014 for the truck.)

Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $16,000 and an estimated useful life of 10 years.

Instructions

Journalize the transactions and the adjusting entries.