The following transactions, adjusting entries, and closing entries were completed by Robinson Furniture Co. during a three-year period

The following transactions, adjusting entries, and closing entries were completed by Robinson 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. 8. Purchased a used delivery truck for $24,000, paying cash.
Mar. 7. Paid garage $900 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 four years, with a residual value of $4,000 for the truck.

2013
Jan. 9. Purchased a new truck for $50,000, paying cash.
Feb. 28. Paid garage $250 to tune the engine and make other minor repairs on the used truck.
Apr. 30. Sold the used truck for $9,500. (Record depreciation to date in 2013 for the truck.)
Dec. 31. Record depreciation for the new truck. It has an estimated residual value of $12,000 and an estimated life of eight years.

2014
Sept. 1. Purchased a new truck for $58,500, paying cash.
4. Sold the truck purchased January 9, 2013, for $36,000. (Record depreciation to date for 2014 for the truck.)
Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $16,000 and an estimated useful life of 10 years.

Instructions
Journalize the transactions and the adjusting entries.


Answer:

















































2012
Jan. 8 Delivery Truck 24,000
Cash 24,000
Mar. 7 Truck Repair Expense 900
Cash 900
Dec. 31 Depreciation Expense—Delivery Truck 12,000
Accum. Depreciation—Delivery Truck 12,000
Delivery truck depreciation.
[$24,000 × (1/4 × 2)]
2013
Jan. 9 Delivery Truck 50,000
Cash 50,000
Feb. 28 Truck Repair Expense 250
Cash 250
Apr. 30 Depreciation Expense—Delivery Truck 2,000
Accum. Depreciation—Delivery Truck 2,000
Delivery truck depreciation.
[($24,000 – $12,000) × (1/4 × 2) × 4/12]
30 Accum. Depreciation—Delivery Truck 14,000
Cash 9,500
Loss on Sale of Delivery Truck 500
Delivery Truck 24,000
Dec. 31 Depreciation Expense—Delivery Truck 12,500
Accum. Depreciation—Delivery Truck 12,500
Delivery truck depreciation.
[$50,000 × (1/8 × 2)]
2014
Sept. 1 Delivery Truck 58,500
Cash 58,500
4 Depreciation Expense—Delivery Truck 6,250
Accum. Depreciation—Delivery Truck 6,250
Delivery truck depreciation.
[($50,000 – $12,500) × (1/8 × 2) × 8/12]
4 Cash 36,000
Accum. Depreciation—Delivery Truck 18,750
Delivery Truck 50,000
Gain on Sale of Delivery Truck 4,750
Dec. 31 Depreciation Expense—Delivery Truck 3,900
Accum. Depreciation—Delivery Truck 3,900
Delivery truck depreciation.
[$58,500 × (1/10 × 2) × 4/12]