80.2K

Verified Solution

Link Copied!

help making the journals for year 1,2,3

The fofiowing transactions and adjusting entries wore completed by Legacy Fumiture Co. during a throeiyear period. Ail are related to the use of delivery equipment. The dostheledscining-baince method of decreciation is used. Year 1 Jath. a Purchased a used delvery trick for 526,960 , paying cash. Nov. 2 Paid gurage 5600 for miscellaneous repalis to the truck. Doc 31 Fecorded depreciation on the truck for the yeat. The estimated usetul life of the truck is four yearis, with a residual value ot $5,250 for the truck Year 2 Jan, Ga Purchasod a new truck lor $50,150, paying cash. Apr. 1 Sold the used truck purchased on January 4 of Year 1 for $14,400. (Pecord depreciation to date in Year 2 for the truciki) June 11 Paid garage $465 for miscellaneous repairs to the truck: Dec.31 Recorded deprecintion for the new truck. It has an estimated residual value of $8,850 and an estimated lite of five years. Year 3 July 1 Purchased a new truck for $55,520, paying cash. Oct. 2 Sold the truck purchased January 6. Year 2, for 517,473 . (Record depreciation to date for Year 3 tar the truck.) Dec. 31 Recorded depreciation on the remaining truck purchased on July 1. it has an estimated residual value of $12,565 and an estimated useful iffe of eight yeam. Requilred: Journalize the transactions and the adjusking entries. Fefer to the chart of accounts for the exact wording of the account tities. CNOW journals do not use lines for journal explanatione. Every line on a journal page is used for debit or oredit enisies. CNOW journals will automatically indent a eBook ASSETS REVENUE 110 Cash 410 Sales 111 Potfy Cash 610 Interest Revenue 112 Accounts Recelyable 620 Gain on Sale of Dellivery Truck 114 Interest Rocelvablo 621 Gain on Sale of Equipment 115 Notes Receivable 116 Marchandise Inventory EXPENSES 117 Supplies 510 Cost of Merchandise Sold 119 Prepaid Insurance 520 Salarios Expense 120 Land 521 Advertising Expense 123 Delivery Truck 522 Depreciation Exponse-Dellivary Truck- 124 Accumulated Depreciation-Delivery Truck 523 Dolivory Expenso 125 quipment 525 Truck Ropair Expense 120 Accurmulated Dopreciation-Equipment 520 Selling Expenses 130 Minerat Righte 531 Rent Expense 131 Accurmulated Dopletion 532. Depreciation Expense-Equipment 132. Goodwill 533 Dopletion Expense 133 Patente 534 Amortization Expense-Patents 535 Insurance Expense LIABILITIES 536 Supplies Expense 210 Accounts Payablo 539 Miscelianeous Expense 211 Salaries Payable 710 Interest Expensa 213 Sales Tax Payable 720 Loss on Sale of Delivery Truck 214 interest Payable 721 Loss on Sale of Equipment 215 Notes Payable 119 Prepaid Insurance 520 Salaries Expense 120 Land 521 Advertising Expenso 123 Delivery Truck 522 Depreciation Expense-Delivery Truck 124 Accumulated Depreciation-Delivery Truck 125 Equipment 525 Truck Repalr Expense 126 Accumulated Depreciation-Equipment 529 Selling Expenses 130 Mineral Rights 531 Rent Expense 131 Accumulated Depletion 532 Depreciation Expense-Equipment 132 Goodwill 533 Depletion Expense 133 Patents 534 Amortization Expense-Patents 535 Insurance Expense LIABILITIES 536 Supplies Expense 210 Accounts Payable 539 Miscellaneous Expense 211 Salaries Payable 710 Interest Expense 213 Sales Tax Payable 720 Loss on Sale of Delivery Truck 214 Interest Payable 721 Loss on Sale of Equipment 215 Notes Payable EQumY 310 Owner's Capital 311 Owner's Drawing amount is enternd. Jourraize the Ynar 1 trangactions and acjusting ontries on Pago 1. Joumalize the Year 2 transactions and adisting entries on Page 2 dournalize the Year 2 transactions and acksting onthies an Pape 2 . Soemalize the Year 3 transactions and acjusting entries on Page a

Answer & Explanation Solved by verified expert

See Answer