Dec 31 recorded depreciation on the remaining truck it has

Reference no: EM13483649

Transactions for Fixed Assets, Including Sale

The following transactions, adjusting entries, and closing entries were completed by King 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.

2012

Jan. 4. Purchased a used delivery truck for $28,000, paying cash. nov. 2. Paid garage $675 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 4 years, with a residual value of $5,000 for the truck.

2013

Jan. 6. Purchased a new truck for $48,000 paying cash.

Apr. 1. Sold the used truck for $15,000. (Record depreciation to date in 2013 for the truck.)

june. 11 Paid garage $450 to tune the engine and make other minor repairs on the used truck.

Dec. 31. Record depreciation for the new truck. It has an estimated trade-in value of $9000 and an estimated life of 5 years.

2014

July 1. Purchased a new truck for $54,000, paying cash.

Oct. 2. Sold the truck purchased January 6, 2013, for $16750. (Record depreciation for the 2014 year.)

Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $12000 and an estimated useful life of 8 years.

Instructions:

Journalize the transactions and the adjusting entries. If an amount box does not require an entry, leave it blank or enter "0".

Reference no: EM13483649

Questions Cloud

For example wages and salaries should be 20700 plus 1500 : harolds roof repair has provided the following data concerning its costsfixed cost per monthcost per

How does government regulation affect a banks expansion in : question 1 how does government regulation affect a banks expansion in the global market? what are the possible

Hodge corporation issued 100000 shares of 20 par value : hodge corporation issued 100000 shares of 20 par value cumulative 6 preferred stock on jan 1 2013 for 2300000. in

Tampa foundry began operations during the current year : tampa foundry began operations during the current year manufacturing various products for industrial use. one such

Dec 31 recorded depreciation on the remaining truck it has : transactions for fixed assets including salethe following transactions adjusting entries and closing entries were

You examine the financial statements of a firm and find : you examine the financial statements of a firm and find that for every unit of product x sold the firm sells 4 units of

Calculate dans basis in his partnership interest at the end : the dairy partnership is owned equally to dan and jim. jims basis is 14000 at the beginning of the tax year. dans basis

Swanton company currently sells 3 products and details of : swanton company currently sells 3 products and details of revenues and costs are given below. the company is thinking

Test can you answer for these : can you answer for these

User Account

All Pages