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

2006
Jan. 9. Purchased a used delivery truck for $32,000, paying cash.
Sept. 24. Paid garage $470 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 $4,500 for the truck.

2007
Jan. 1. Purchased a new truck for $57,500, paying cash.
June 30. Sold the used truck for $13,500. (Record depreciation to date in 2007 for the truck.)
Nov. 23. Paid garage $550 for miscellaneous repairs to the truck.
Dec. 31. Recorded depreciation on the truck. It has an estimated residual value of $12,000 and an estimated life of five years.

2008
July 1. Purchased a new truck for $60,000, paying cash.
Oct. 1. Sold the truck purchased January 1, 2007, for $22,000. (Record depreciation for the year.)
Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $15,000 and an estimated useful life of eight years.
Instructions
Journalize the transactions and the adjusting entries