Transactions for fixed assets, including sale The following transactions and adjusting 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. Year 1 January 8. March 7. Purchased a used delivery truck for $61,440, paying cash. Paid garage $180 for changing the oil, replacing the oil filter, and tuning the engine on the delivery truck. December 31. Recorded depreciation on the truck for the fiscal year. The estimated useful life of the truck is 8 years, with a residual value of $12,900 for the truck. Year 2 January 9. February 28 April 30. December 31. Year 3 September 1. September 4. December 31. Purchased a new truck for $70,560, paying cash. Paid garage $260 to tune the engine and make other minor repairs on the used truck. Sold the used truck for $40,440. (Record depreciation to date in Year 2 for the truck.) Record depreciation for the new truck. It has an estimated residual value of $12,700 and an estimated life of 7 years. Purchased a new truck for $93,000, paying cash. Sold the truck purchased January 9, Year 2, for $42,900. (Record depreciation to date for Year 3 for the truck.) Recorded depreciation on the remaining truck. It has an estimated residual value of $16,700 and an estimated useful life of 10 years. Year 1 January 8 Check My Work Required: Journalize the transactions and the adjusting entries. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations. Round your final answers to the nearest cent. Delivery Truck - ✓ 61.440 ✔ 4 لام Previous Transactions for fixed assets, including sale depreciation is used. Year 1 January 8. Purchased a used delivery truck for $61, 440, paying cash. March 7. Paid garage $180 for changing the oil, replacing the oil filter, and tuning the engine on the delivery truck. December 31. Recorded depreciation on the truck for the fiscal year. The estimated useful life of the truck is 8 years, with a residual value of $12,900 for the truck. Year 2 January 9. Purchased a new truck for $70, 560, paying cash. February 28. Paid garage $260 to tune the engine and make other minor repairs on the used truck. April 30. Sold the used truck for $40, 440. (Record depreciation to date in Year 2 for the truck.) December 31. Record depreciation for the new truck. It has an estimated residual value of $12,700 and an estimated life of 7 years. Year 3 September 1. Purchased a new truck for $93, 000, paying cash. September 4. Sold the truck purchased January 9, Year 2, for $42,900. (Record depreciation to date for Year 3 for the truck.) December 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $16,700 and an estimated useful life of 10 years. Required: Year 1 lanuarv 8 Deliverv Truck 61440✓

Transactions for fixed assets, including sale The following transactions and adjusting 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. Year 1 January 8. March 7. Purchased a used delivery truck for $61,440, paying cash. Paid garage $180 for changing the oil, replacing the oil filter, and tuning the engine on the delivery truck. December 31. Recorded depreciation on the truck for the fiscal year. The estimated useful life of the truck is 8 years, with a residual value of $12,900 for the truck. Year 2 January 9. February 28 April 30. December 31. Year 3 September 1. September 4. December 31. Purchased a new truck for $70,560, paying cash. Paid garage $260 to tune the engine and make other minor repairs on the used truck. Sold the used truck for $40,440. (Record depreciation to date in Year 2 for the truck.) Record depreciation for the new truck. It has an estimated residual value of $12,700 and an estimated life of 7 years. Purchased a new truck for $93,000, paying cash. Sold the truck purchased January 9, Year 2, for $42,900. (Record depreciation to date for Year 3 for the truck.) Recorded depreciation on the remaining truck. It has an estimated residual value of $16,700 and an estimated useful life of 10 years. Year 1 January 8 Check My Work Required: Journalize the transactions and the adjusting entries. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations. Round your final answers to the nearest cent. Delivery Truck - ✓ 61.440 ✔ 4 لام Previous Transactions for fixed assets, including sale depreciation is used. Year 1 January 8. Purchased a used delivery truck for $61, 440, paying cash. March 7. Paid garage $180 for changing the oil, replacing the oil filter, and tuning the engine on the delivery truck. December 31. Recorded depreciation on the truck for the fiscal year. The estimated useful life of the truck is 8 years, with a residual value of $12,900 for the truck. Year 2 January 9. Purchased a new truck for $70, 560, paying cash. February 28. Paid garage $260 to tune the engine and make other minor repairs on the used truck. April 30. Sold the used truck for $40, 440. (Record depreciation to date in Year 2 for the truck.) December 31. Record depreciation for the new truck. It has an estimated residual value of $12,700 and an estimated life of 7 years. Year 3 September 1. Purchased a new truck for $93, 000, paying cash. September 4. Sold the truck purchased January 9, Year 2, for $42,900. (Record depreciation to date for Year 3 for the truck.) December 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $16,700 and an estimated useful life of 10 years. Required: Year 1 lanuarv 8 Deliverv Truck 61440✓

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11PA: Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and...

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