Jan

5 Depreciation Expense—Delivery Equipment 2,000

Accumulated Depreciation—Delivery Equipment 2,000

5 Delivery Equipment 5,000 Cash 5,000

5 Accumulated Depreciation—Delivery Equipment 2,000

Delivery equipment 2,000

Apr. 7 Truck Repair Expense 125 Cash 125

Dec. 31 Depreciation Expense—Delivery Equipment 10,000 Accumulated Depreciation—Delivery Equipment10,000 Jan. 1 Delivery Equipment 80,000 Cash 80,000 Mar. 13 Truck Repair Expense 180 Cash 180 2006

Apr. 30 Depreciation Expense—Delivery Equipment2,500 Accumulated Depreciation—Delivery Equipment 2,500

30 Accumulated Depreciation—Delivery Equipment 12,500Cash 24,500

Loss on Disposal of Fixed Assets 3,000 Delivery Equipment 40,000

Dec. 31Depreciation Expense—Delivery Equipment 16,000 Accumulated Depreciation—Delivery ...Equipment 16,000 2007

July 1Delivery Equipment 45,000 Cash 45,000

Oct. 2 Depreciation Expense—Delivery Equipment 9,600 Accumulated Depreciation—Delivery Equipment9,600

2Cash 63,075 Accumulated Depreciation—Delivery Equipment 25,600 Delivery Equipment 80,000 Gain on Disposal of Fixed Assets 8,675

Dec. 31 Depreciation Expense—Delivery Equipment4,500 Accumulated Depreciation—Delivery Equipment 4,500

Feb. 15 Merchandise Inventory 30,000 Accounts Payable—Ranier Co. 30,000 Mar. 17 Accounts Payable—Ranier Co. 30,000 Notes Payable 30,000 Apr. 16 Notes Payable 30,000 interest Expense 125 Cash 30,125 July 15 Cash 40,000 Notes Payable 40,000

25 Tools 43,950 Interest Expense 1,050 Notes Payable 45,000 Oct. 13 Notes Payable 40,000 Interest Expense600 Notes Payable 40,000 Cash 600

Nov. 12 Notes Payable 40,000 Interest Expense 300 Cash 40,300 22 Notes Payable 45,000 Cash 45,000

Dec. 1 Office Equipment 80,000 Notes Payable 60,000 Cash 20,000

17 Litigation Loss 41,000 Litigation Claims Payable 41,000 31 Notes Payable 6,000 Interest Expense40 cash 6040

2.a.Product Warranty Expense 15,680 Product Warranty Payable b. Interest Expense 360 Interest Payable 360

15,680