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  • The Following Transactions and Adjusting Entries Were Completed by Legacy

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    Amit Pandey
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    Legacy Furniture Co. purchased and sold delivery trucks over a three-year period, recording various transactions and depreciation entries. In Year 1, they purchased a used truck for $28,000 and incurred repair costs. Depreciation was recorded on the truck using a four-year useful life. In Year 2, they purchased a new truck for $48,000 and sold the used truck, recording depreciation to date. Repair costs and depreciation on the new truck were also recorded. In Year 3, they purchased another new truck and sold the truck from Year 2, recording depreciation on both to date.

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    Legacy Furniture Co. purchased and sold delivery trucks over a three-year period, recording various transactions and depreciation entries. In Year 1, they purchased a used truck for $28,000 and incurred repair costs. Depreciation was recorded on the truck using a four-year useful life. In Year 2, they purchased a new truck for $48,000 and sold the used truck, recording depreciation to date. Repair costs and depreciation on the new truck were also recorded. In Year 3, they purchased another new truck and sold the truck from Year 2, recording depreciation on both to date.

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    12 views2 pages

    The Following Transactions and Adjusting Entries Were Completed by Legacy

    Uploaded by

    Amit Pandey
    Legacy Furniture Co. purchased and sold delivery trucks over a three-year period, recording various transactions and depreciation entries. In Year 1, they purchased a used truck for $28,000 and incurred repair costs. Depreciation was recorded on the truck using a four-year useful life. In Year 2, they purchased a new truck for $48,000 and sold the used truck, recording depreciation to date. Repair costs and depreciation on the new truck were also recorded. In Year 3, they purchased another new truck and sold the truck from Year 2, recording depreciation on both to date.

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    Solved: The following transactions and adjusting entries

    were completed by Legacy


    The following transactions and adjusting entries were completed by Legacy

    The following transactions and adjusting 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.

    Year 1

    Jan. 4. Purchased a used delivery truck for $28,000, paying cash.

    Nov. 2. Paid garage $675 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 $5,000 for the truck.

    Year 2

    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 Year 2 for the truck.)

    June 11. Paid garage $450 for miscellaneous repairs to the truck.

    Dec. 31. Record depreciation for the new truck. It has an estimated residual value of $9,000 and
    an estimated life of five years.

    Year 3

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

    Oct. 2. Sold the truck purchased January 6, Year 2, for $ 16,750. (Record depreciation to date
    for Year 3 for the truck.)

    Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $
    12,000 and an estimated useful life of eight years.

    Instructions

    Journalize the transactions and the adjusting entries.

    Reach out to freelance2040@yahoo.com for enquiry.


    The following transactions and adjusting entries were completed by Legacy

    ANSWER
    https://solvedquest.com/the-following-transactions-and-adjusting-entries-were-completed-by-
    legacy/

    Reach out to freelance2040@yahoo.com for enquiry.


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