The following transactions, adjusting entries, and closing entries were completed by Legacy Furniture Co. during a three-year period. All are
Jan. 4. Purchased a used delivery truck for $28,000, paying cash.
Nov. 2. Paid garage $675 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 $5,000 for the truck.
Jan. 6. Purchased a new truck for $48,000, paying cash.
Apr. 1. Sold the used truck for $15,000. (Record depreciation to date in 2015 for the truck.)
June 11. Paid garage $450 for miscellaneous repairs to the truck.
Dec. 31. Record depreciation for the new truck. It has an estimated residual value of
$9,000 and an estimated life of five years.
July 1. Purchased a new truck for $54,000, paying cash.
Oct. 2. Sold the truck purchased January 6, 2015, for $16,750. (Record depreciation to date for 2016 for the truck.)
Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $12,000 and an estimated useful life of eight years.
Journalize the transactions and the adjusting entries.
This problem has been solved!
Do you need an answer to a question different from the above? Ask your question!
Step by Step Answer:
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: June 16, 2016 01:36:50