The following transactions, adjusting entries, and closing entries were complete

Question

The following transactions, adjusting entries, and closing entries were completed by Legacy 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.

Journalize the transactions and the adjusting entries. Refer to the Chart of Accounts for exact wording of account titles. Be sure to include the YEAR in the date for the FIRST transaction on each page.

Journalize the transactions and the adjusting entries. Refer to the Chart of Accounts for exact wording of account titles. Scroll down to access pages 2 and 3 of the journal. Be sure to include the YEAR in the date for the FIRST transaction on each page.

Journalize the 2014 transactions and adjusting entries on Page 1. Be sure to include the YEAR in the date for the FIRST transaction.

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JOURNAL

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Adjusting Entries

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Journalize the 2015 transactions and adjusting entries on Page 2. Be sure to include the YEAR in the date for the FIRST transaction.

PAGE 2

JOURNAL

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Adjusting Entries

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Journalize the 2016 transactions and adjusting entries on Page 3. Be sure to include the YEAR in the date for the FIRST transaction.

PAGE 3

JOURNAL

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Adjusting Entries

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2014 Jan. 4. Purchased a used delivery truck for $27,680, paying cash. Nov. 2. Paid garage $725 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 $4,900 for the truck. 2015 Jan. 6. Purchased a new truck for $49,850, paying cash. Apr. 1. Sold the used truck for $15,050. (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 $9,185 and an estimated life of five years. 2016 July 1. Purchased a new truck for $53,640, paying cash. Oct. 2. Sold the truck purchased January 6, 2015, for $17,607. (Record depreciation to date for 2016 for the truck.) Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $12,345 and an estimated useful life of eight years.

Explanation / Answer

For the year 2014

Journal Entries for the year 2015

Journal Entries for the year 2016

Date Description Post Ref Debit Credit 4-Jan-14 Truck A/c ......Dr. (A) $ 27,680 To Cash A/c $ 27,680 (Being Purchased Truck in Cash) 2-Nov-14 Miscellanous Expenses A/c .... Dr. $ 725 To Cash A/c $ 725 ( Being paid in cash for repairs expenses of Truck) Adjustment Entries 31-Dec-14 Depeciation A/c ....... Dr. $ 11390 To Accumulated Depreciation A/c $ 11,390 (Being Depreciation for the year is charged using double-declining-balance method having useful life 4 year and residual value $ 4,900)

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