The following transactions, adjusting entries, and closing entries were completed by Yellowstone Furniture Co. during a 3-year period. All are related to the use of delivery equipment. The declining-balance method (at twice the straight-line rate) of depreciation is used.
2005
Jan. 2 Purchased a used delivery truck for $37,000, paying cash.
5 Paid $5,000 to replace the engine. The old engine was estimated to have a value of $2,000. The new engine is expected to have a useful life equal to the remaining life of the truck.
Apr. 7 Paid garage $125 for changing the oil, replacing the oil filter, and tuning the engine on the delivery truck.
2005
Dec. 31 Recorded depreciation on the truck and engine component for the fiscal year. The estimated useful life of the truck and engine is 8 years, with a residual value of $3,000 for the truck.
2006
Jan. 1 Purchased a new truck for $80,000, paying cash.
Mar. 13 Paid garage $180 to tune the engine and make other minor repairs on the truck.
Apr. 30 Sold the used truck for $24,500. (Record depreciation to date in 2006 for the truck.)
Dec. 31 Recorded depreciation on the truck. It has an estimated trade-in value of $4,000 and an estimated life of 10 years.
2007
July 1 Purchased a new truck for $45,000, paying cash.
Oct. 2 Sold the truck purchased Jan. 1, 2006, for $63,075. (Record depreciation for the year.)
Dec. 31 Recorded depreciation on the remaining truck. It has an estimated residual value of $4,500 and an estimated useful life of 10 years.

Instructions
Journalize the transactions and the adjusting entries.