All are related to the use of delivery equipment

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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. 2014 Jan. 4. Purchased a used delivery truck for $28,400, paying cash. Nov. 2. Paid garage $710 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 $4,835 for the truck. 2015 Jan. 6. Purchased a new truck for $46,800, paying cash. Apr. 1. Sold the used truck for $15,145. (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 $8,560 and an estimated life of five years. 2016 July 1. Purchased a new truck for $52,960, paying cash. Oct. 2. Sold the truck purchased January 6, 2015, for $16,356. (Record depreciation to date for 2016 for the truck.) Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $12,375 and an estimated useful life of eight years.

Reference no: EM131219481

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