The following transactions adjusting entries and closing ent

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.

Chart of Accounts

Journal

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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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.

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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.

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2014
Jan. 4.	Purchased a used delivery truck for $26,960, paying cash.
Nov. 2.	Paid garage $600 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 $5,250 for the truck.
2015
Jan. 6.	Purchased a new truck for $50,150, paying cash.
Apr. 1.	Sold the used truck for $14,400. (Record depreciation to date in 2015 for the truck.)
June 11.	Paid garage $465 for miscellaneous repairs to the truck.
Dec. 31.	Record depreciation for the new truck. It has an estimated residual value of $8,850 and an estimated life of five years.
2016
July 1.	Purchased a new truck for $55,520, paying cash.
Oct. 2.	Sold the truck purchased January 6, 2015, for $17,473. (Record depreciation to date for 2016 for the truck.)
Dec. 31.	Recorded depreciation on the remaining truck. It has an estimated residual value of $12,565 and an estimated useful life of eight years.

Solution

2014 04-Jan-14 Delivery truck 26960                Cash 26960 02-Nov Truck repair expense 600                 cash 600 Adjusting entry Double declining = 4 years = 1*200%/4 = 50% 31-Dec Depreciatione expense-delivery truck 13480 (26960*50%)             accumulated depreciation- delivery truck 13480 2015 06-01-2015 Delivery truck 50150                Cash 50150 01-Apr-15 Depreciation expense-delivery truck 1685 (13480*50%*3/12)              accumulated depreciation -delivery truck 1685 01-Apr-15 cash 14400 accumulated depreciation -delivery truck 15165               Delivery truck 26960               Gain on sale of delivery truck 2605 11-Jun Truck repair expense 465                 cash 465 Adjusting entry Double declining = 5 years = 1*200%/5 = 40% 31-Dec Depreciatione expense-delivery truck 20060 (50150*40%)             accumulated depreciation- delivery truck 20060 2016 01-Jul-16 Delivery truck 55520                Cash 55520 02-Oct Depreciation expense-delivery truck 9027 (50150-20060)*40%*9/12              accumulated depreciation -delivery truck 9027 02-Oct cash 17473 accumulated depreciation -delivery truck 29087 Loss on sale of delivery truck 3590               Delivery truck 50150 Adjusting entry Double declining = 8 years = 1*200%/8 = 25% 31-Dec Depreciatione expense-delivery truck 6940 (55520*25%*6/12)             accumulated depreciation- delivery truck 6940