Transactions for fixed assets, including sale
The subsequent transactions, adjusting entries, and closing entries were completed by D. Hurd Furniture Co. in the current three-year period. All are related to the use of delivery equipment. The double-declining-balance method of depreciation is used.
2010
Jan. 9. Purchased a used delivery truck for $30,000, paying cash.
Mar. 17. Paid garage $400 for miscellaneous repairs to the truck.
Dec. 31. Recorded depreciation on the truck for the year. The evaluated useful life of the truck is four years, with a residual value of $6,000 for the truck.
2011
Jan. 2. Purchased a new truck for $48,000, paying cash.
Aug. 1. Sold the used truck for $12,500.
Sept. 23. Paid garage $325 for various repairs to the truck.
Dec. 31. Record depreciation for the new truck. It has evaluated residual value of $11,000 and an estimated life of five years.
2012
July 1. Purchased a new truck for $52,000, paying cash.
Oct. 2. Sold the truck purchased 2nd January, 2011, for $17,000.
Dec. 31. Recorded depreciation on the remaining truck. It has an evaluated residual value of $14,000 and an estimated useful life of eight years.
Instructions
Journalize the adjusting entries and the transactions