Question

ISUUclons The following transactions and adjusting 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 Year 1 Jan. 4 Purchased a used delivery truck for $26,000, paying cash. Nov. 2 Paid garage $825 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 $2,000 for the truck Year 2 Jan 6. Purchased a new truck for S60,000, paying cash. Apr 1 Sold the used truck for $14.000. (Record depreciation to date in Year 2 for the truck) June 11 Paid.narane 5280 for miscelananus renairs.to.the rick

please help me solve this. first two photos are instructions and others are the chart of accounts for journal entries

I am able to clearly see the images as well as they can be enlarged if you have any issues seeing them as is

Answer 1

Answer:

Year-1
Date	Account titles and Explanation	Debit $	Credit $
04-Jan	Truck	26,000
	Cash		26,000
02-Nov	Maintenance expense - truck	825
	Cash		825
31-Dec	Dep.expense	6,000
	Accumulated depr - Truck		6,000
	(26,000 - 2,000) / 4= 6000 - annual depr expense)
Year-2
Date	Description	Debit $	Credit $
06-Jan	Truck	60,000
	Cash		60,000
01-Apr	depr.exp	1,500
	Accumulated depr(6000*3/12)		1,500
01-Apr	Cash	14,000
	Accumulated Depreciation - Truck	7,500
	loss on sale(26000-14000-7500)	4,500
	Truck		26,000
11-Jun	maintenance expense	280
	Cash		280
31-Dec	Depreciation expense	12,600
	Accumulated Depreciation - Truck		12,600
	(60,000 - 7,000) / 5= 12600- annual depr expense)
Year-3
Date	Description	Debit $	Credit $
01-Jul	Truck	65,000
	Cash		65,000
02-Oct	Depreciation exp (12,600*9/12)	9,450
	Accumulated Depreciation - Truck		9,450
02-Oct	Cash	19,520
	Accumulated Depreciation - Truck	22,050
	loss on sale(60000-19520-22050)	18,430
	Truck		60,000
31-Dec	Depreciation expense	5,375
	Accumulated Depreciation - Truck		5,375
	(65,000 -6,000) / 8= 5375 - annual depr expense