The following transactions, adjusting entries, and closing entries were completed by D. Hurd 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. 2010

Jan. 9. Purchased a used delivery truck for $30,000, paying cash.

Mar. 17. Paid garage $400 for miscellaneous repairs to the truck.

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 $6,000 for the truck. 2011

Jan. 2. Purchased a new truck for $48,000, paying cash.

Aug. 1. Sold the used truck for $12,500. (Record depreciation to date in 2011 for the truck.)

Sept. 23. Paid garage $325 for miscellaneous repairs to the truck.

Dec. 31. Record depreciation for the new truck. It has an estimated residual value of $11,000 and an estimated life of years. 2012

July 1. Purchased a new truck for $52,000, paying cash.

Oct. 2. Sold the truck purchased January 2, 2011, for $17,000. (Record depreciation for the year.)

Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $14,000 and an estimated useful life of eight years.

Instructions

Journalize the transactions and the adjusting entries