transactions for fixed assets including sale the following transactions and adjusting entries were completed by...
50.1K
Verified Solution
Link Copied!
Question
Accounting
transactions for fixed assets including sale
the following transactions and adjusting entries were completed by Robinson furniture Co. during a three-year. all are related to the use of delivery equipment. the double declining balance method of depreciation is used.
Year 1.
Jan.8 purchase a used delivery truck for $29,400, paying cash.
Mar.7 paid garage $230 for changing the oil replacing the oil filter and tuning the engine on the delivery truck.
Dec.31 recorded depreciation on the truck for the fiscal year. the estimated useful life of the truck is 7 years, with a residual value of $6200 for the truck.
Year 2
Jan 9. purchase a new truck for $53,460 paying cash.
Feb.28. Paid garage $280 to tune the engine and make other minor repairs on the used truck.
Apr. 30. sold the used truck for $18,150 ( record depreciation to date and year 2 for the truck)
Dec. 31. record depreciation for the new truck. it has an estimated trade in value of $9,600 and an estimated life of 9 years.
Year 3.
Sept.1 purchased a new truck for $85,000 paying cash.
Sept. 4 so the truck purchase January 9, Year 2 for $37,020 ( record depreciation to date in Year 3 for the truck.)
Dec.31 record depreciation on the remaining truck. it has an estimated residual value of $15,300 and an estimated useful life of 10 years.
Required:
journalize the transactions and 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.
