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 Jan. Purchased a used delivery truck for $29,400, paying cash. 8. Mar. Paid garage $230 for changing the oil, replacing the oil filter, and tuning the engine on the delivery truck. 7. Dec. Recorded depreciation on the truck for the fiscal year. The estimated useful life of the truck is 7 years, with 31. a residual value of $6,200 for the truck. Year 2 Jan. Purchased a new truck for $53,460, paying cash. 9. Feb. Paid garage $440 to tune the engine and make other minor repairs on the used truck. 28. Apr. Sold the used truck for $18,150. (Record depreciation to date in Year 2 for the truck.) 30. Dec. Record depreciation for the new truck. It has an estimated trade-in value of $9,600 and an estimated life of 31. 9 years. Year 3 Sept. Purchased a new truck for $80,000, paying cash. 1. Sept. Sold the truck purchased January 9, Year 2, for $37,020. (Record depreciation to date in Year 3 for the 4. truck.) Dec. Recorded depreciation on the remaining truck. It has an estimated residual value of $14,400 and an 31. estimated useful life of 10 years. 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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

Jan. Purchased a used delivery truck for $29,400, paying cash. 8.

Mar. Paid garage $230 for changing the oil, replacing the oil filter, and tuning the engine on the delivery truck. 7.

Dec. Recorded depreciation on the truck for the fiscal year. The estimated useful life of the truck is 7 years, with 31. a residual value of $6,200 for the truck.

Year 2

Jan. Purchased a new truck for $53,460, paying cash. 9.

Feb. Paid garage $440 to tune the engine and make other minor repairs on the used truck. 28.

Apr. Sold the used truck for $18,150. (Record depreciation to date in Year 2 for the truck.) 30.

Dec. Record depreciation for the new truck. It has an estimated trade-in value of $9,600 and an estimated life of 31. 9 years.

Year 3

Sept. Purchased a new truck for $80,000, paying cash. 1.

Sept. Sold the truck purchased January 9, Year 2, for $37,020. (Record depreciation to date in Year 3 for the 4. truck.)

Dec. Recorded depreciation on the remaining truck. It has an estimated residual value of $14,400 and an 31. estimated useful life of 10 years.

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.

Year 1, Jan. 8
Delivery Truck v
29,400
Cash
29,400
Mar. 7
Truck Repair and Maintenance Expense
Cash
Depreciation Expense-Delivery Truck v
Dec. 31
Accumulated Depreciation-Delivery Truck v
Year 2, Jan. 9
Delivery Truck v
Cash
Feb. 28
Apr. 30-Deprec.
Transcribed Image Text:Year 1, Jan. 8 Delivery Truck v 29,400 Cash 29,400 Mar. 7 Truck Repair and Maintenance Expense Cash Depreciation Expense-Delivery Truck v Dec. 31 Accumulated Depreciation-Delivery Truck v Year 2, Jan. 9 Delivery Truck v Cash Feb. 28 Apr. 30-Deprec.
Apr. 30-Sale
Dec. 31
D000 00 10 1I 110I II
DO00 II II I1 IIII II
Transcribed Image Text:Apr. 30-Sale Dec. 31 D000 00 10 1I 110I II DO00 II II I1 IIII II
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