[anischeng]

The following transactions, adjusting entries and closing entries wre completed by McHenry furniture Co. During a 3 year period. All are related to the use of delivery equipment. The double declining method of depreciation is used.

2010.
1/4) Purchased a used delivery truck for 54,000 paying cash.
2/24). Paid garage $275 for changing the oil, replacing the oil filter, and tuning the engine on the delivery truck.
12/31). Recorded depreciation on the truck for the fiscal year. The estimated useful like of the truck is eight years, with a residual value of $12,000 for the truck.
(I already now how to solve for 2010)

2011
1/3). Purchased a new truck for $60000 paying cash.
3/7). Paid garage $300 to tune the engine and make other minor repairs on the used truck.
4/30). Sold the used truck for $35000 (Record depreciation on date in 2011 for the truck)
12/31)/ Record depreciation for the new truck. It has an estimatd residual value of 16,000 and an estimated life of 10 years.
( I'm stuck on 4/30 12/31)

2012

7/1). Purchased a new truck for 64,000 paying cash.
10/7). Sold the truck purchased 1/3/2011, for 45000 (Record depreciation for the year)
12/31). Recorded depreciation on the remaining truck. It has an estimated residual value of 17,500 and an estimated useful life of 10 years.
(I think if you help me with 2011, I can solve 2012 by myself)

[stephaniealcala]

2010
Jan. 4 Delivery Truck $ 54, 000
Cash $54, 000

Feb. 24 Truck Repairs Expense $ 275
Cash $275

Dec. 31 Depreciation Expense $13,500
Accum. Depreciation-Delivery Truck $13,500 ($54,000*1/8*2)

2011
Jan. 3 Delivery Truck $ 60,000
Cash $60,000

Mar. 7 Truck Repairs Expense $300
Cash $300

Apr. 30 Depreciation Expense $ 3,375
Accum. Dep. - Delivery Truck $3,375
[(54,000-13,500)*(1/8*2)*(4/2)]

30 Cash $35,000
Accum. Dep. - DT 16,875
Loss on Sale of DT. 2,125
Delivery Truck $54,000

Dec. 31 Depreciation Expense $12,000
Accum. Dep. - DT $12,000
[60,000*(1/10*2)

2012
July 1 Delivery Truck $64,000
Cash $64,000

Oct. 7 Dep. Expense $ 7,200
Accum. Dep. - DT $7,200
[(60,000-12,000)*(1/10*2)*(9/12)]

7 Cash $45,000
Accum. Depr. - DT 19,200
DT $60,000
Gain on sale of DT 4,200

Dec. 31 Dep. Expense $12,800
Accum. Dep. - DT $12,800
[64,000*(1/10*2)]


~ I'm not sure about the accounts but hopefully, the answers are right! :)

Stephanie A. here :) 17. :)