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ID: 2519477 • Letter: N
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now.com/ilm/takeAssignment/takeAssignmentMain.do?invoker- assignments&takeAssignmentSessionLocator-as; Print tem Transactions for fixed assets, including sale Journal All are related to the use of delivery equipment The The following transactiors and adjusting entries were completed by Legacy Funture Co. during a three-year period. Year 1 Jan. 4 Purchased a used delivery truck for $28.000, paying cash Nov 2 Paid garage 3075 for miscellaneous repains to the bruck Dec 31 Recorded depreciation on the truck for the year The estmated usetul life of the truck is four years wh Year 2 Jan & Purchased a new truck for 548,000. paying cash Apr. 1. Sold the used truck for $15.000 (Reoord depreciation to dase in Year 2 for the truck) June 11. Paid garage 35430 for misoellaneous repains to the tuck Dec 31 Record depreoiation for the new truck it has an estimated residual value of $9,000 and an estmated ife of ive yeas Year 3 July 1. Purchased a new truck for 354,000, paying cash Ot 2 Sold the tuck purchased January& Year 2 for 310.750(Reoond depreciation to date for Year 3 for the tuck) Dec 31. Recorded depreciation on the remaining truck It has an estimated residual value of $12.000 and arn estimated useful ife of eight yean Joumalize the transactions and the adjusting entries. Refer to the Chat of Aacounta or exact wording of account es All transoctions on this poge munt be entered (except for past refo)) before you will receive Check My Work feedback OURNAL ACCOUNTING EQUATION CMT 28,000.00 en 4 Delivery Truck Cash 8,00000 Now. 2 Adjusting EnariesExplanation / Answer
Journal entries
date
explanation
debit
credit
cost of truck
28000
less scrap value
5000
4-Jan
delivery truck
28000
amount to be depreciated
23000
cash
28000
straight line depreciation rate
1/4
0.25
double declining rate
.25*2*100
50
2-Nov
repair expense
675
cash
675
Year
amount to be depreciated
depreciation rate
annual depreciation
year end balance
0
23000
31-Dec
depreciation expense
11500
1
23000
0.5
11500
11500
accumulated depreciation-delivery truck
11500
2
11500
0.5
5750
5750
Depreciation for 3 months in 2nd year
5750*3/12
1437.5
Year 2
6-Jan
truck
48000
cash
48000
cost of truck
48000
1-Apr
depreciation expense
1437.5
less scrap value
9000
accumulated depreciation
1437.5
amount to be depreciated
39000
straight line depreciation rate
1/5
0.2
1-Apr
cash
16000
double declining rate
.20*2*100
40
accumulated depreciation
12937.5
delivery truck
28000
Year
amount to be depreciated
depreciation rate
annual depreciation
year end balance
gain on sale of delivery truck
937.5
0
39000
1
39000
0.5
19500
19500
11-Jun
repair expense
450
2
19500
0.5
9750
9750
cash
450
Depreciation for 9 months for 2nd year
9750*9/12
7312.5
31-Dec
depreciation expense
19500
accumulated depreciation
19500
Year -3
1-Jul
truck
54000
cash
54000
cost of truck
54000
less scrap value
12000
1-Oct
depreciation expense
7312.5
amount to be depreciated
42000
accumulated depreciation
7312.5
straight line depreciation rate
1/8
0.125
double declining rate
.125*2*100
25
2-Oct
cash
16750
accumulated depreciation
26812.5
Year
amount to be depreciated
depreciation rate
annual depreciation
year end balance
loss on sale of truck
4437.5
0
39000
delivery truck
48000
1
39000
25%
9750
29250
Depreciation for first 6 months
9750/2
4875
31-Dec
depreciation expense
4875
accumulated depreciation
4875
Journal entries
date
explanation
debit
credit
cost of truck
28000
less scrap value
5000
4-Jan
delivery truck
28000
amount to be depreciated
23000
cash
28000
straight line depreciation rate
1/4
0.25
double declining rate
.25*2*100
50
2-Nov
repair expense
675
cash
675
Year
amount to be depreciated
depreciation rate
annual depreciation
year end balance
0
23000
31-Dec
depreciation expense
11500
1
23000
0.5
11500
11500
accumulated depreciation-delivery truck
11500
2
11500
0.5
5750
5750
Depreciation for 3 months in 2nd year
5750*3/12
1437.5
Year 2
6-Jan
truck
48000
cash
48000
cost of truck
48000
1-Apr
depreciation expense
1437.5
less scrap value
9000
accumulated depreciation
1437.5
amount to be depreciated
39000
straight line depreciation rate
1/5
0.2
1-Apr
cash
16000
double declining rate
.20*2*100
40
accumulated depreciation
12937.5
delivery truck
28000
Year
amount to be depreciated
depreciation rate
annual depreciation
year end balance
gain on sale of delivery truck
937.5
0
39000
1
39000
0.5
19500
19500
11-Jun
repair expense
450
2
19500
0.5
9750
9750
cash
450
Depreciation for 9 months for 2nd year
9750*9/12
7312.5
31-Dec
depreciation expense
19500
accumulated depreciation
19500
Year -3
1-Jul
truck
54000
cash
54000
cost of truck
54000
less scrap value
12000
1-Oct
depreciation expense
7312.5
amount to be depreciated
42000
accumulated depreciation
7312.5
straight line depreciation rate
1/8
0.125
double declining rate
.125*2*100
25
2-Oct
cash
16750
accumulated depreciation
26812.5
Year
amount to be depreciated
depreciation rate
annual depreciation
year end balance
loss on sale of truck
4437.5
0
39000
delivery truck
48000
1
39000
25%
9750
29250
Depreciation for first 6 months
9750/2
4875
31-Dec
depreciation expense
4875
accumulated depreciation
4875
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