PA9-4 (Algo) Recording Transactions and Adjustments for Tangible and Intangible Assets [LO 9-1, LO 9-2, LO 9-3, LO 9-4, LO 9-5, LO 9-6]The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents. January 2, 2020Paid $88,000 cash to purchase storage shed components.January 3, 2020Paid $4,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $7,000.April 1, 2020Paid $31,000 cash to purchase a pickup truck for use in the business. The truck has an estimated useful life of five years and a residual value of $5,000. This vehicle is to be recorded in the Truck account.May 13, 2020Paid $300 cash for minor repairs to the pickup truck's upholstery.July 1, 2020Paid $27,000 cash to purchase patent rights on a new paper bag manufacturing process. The patent is estimated to have a remaining useful life of five years.December 31, 2020Recorded depreciation and amortization on the pickup truck, storage shed, and patent. June 30, 2021Sold the pickup truck for $26,000 cash. (Record the depreciation on the truck prior to recording its disposal.)December 31, 2021Recorded depreciation on the storage shed. Recorded the patent amortization. After recording the patent amortization, determined that the patent was impaired and wrote off its remaining book value (i.e., wrote down the book value to zero).Required:Prepare the journal entries required on each of the above dates. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) ezto.mheducation.com+Mail - Paula Ortiz - OutlookD2L Summary - Chapter 9 Quiz - ACC-153-0...M Question 9 - Ch 9: Homework Assignme...G January 2, 2020 Paid $88,000 cash to pu...b Success Confirmation of Question Submi..Ch 9: Homework Assignment iSavedHelpSave & ExitSubmitCheck my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion.Return to question9.Маy 15,ש /40гаu $500 саsi Tor шпог гераггs to Lne prcкиp trиск S uрпоtsteгу.July 1, 2020 Paid $27,000 cash to purchase patent rights on a new paper bag manufacturing process. The patent isestimated to have a remaining useful life of five years.December 31, 2020 Recorded depreciation and amortization on the pickup truck, storage shed, and patent.June 30, 2021 Sold the pickup truck for $26,000 cash. (Record the depreciation on the truck prior to recording its1disposal.)pointsDecember 31, 2021 Recorded depreciation on the storage shed. Recorded the patent amortization. After recording thepatent amortization, determined that the patent was impaired and wrote off its remaining book value(i.e., wrote down the book value to zero).Required:Prepare the journal entries required on each of the above dates. (If no entry is required for a transaction/event, select "No JournalEntry Required" in the first account field. Do not round intermediate calculations.)X Answer is not complete.NoDateGeneral JournalDebitCredit1January 02, 2020 Buildings88,000Cash88,000January 03, 2020 Buildings4,000Cash4,000April 01, 2020Truck31,000Cash31,0004May 13, 2020Repairs and Maintenance Expense300Cash300July 01, 2020Patents27,000McGrawHill< Prev9 of 10Next > ezto.mheducation.com+Mail - Paula Ortiz - OutlookD2L Summary - Chapter 9 Quiz - ACC-153-0...M Question 9 - Ch 9: Homework Assignme...G January 2, 2020 Paid $88,000 cash to pu...b Success Confirmation of Question Submi..Ch 9: Homework Assignment iSavedHelpSave & ExitSubmitCheck my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion.Return to questionJuly 01, 2020Patents27,000Cash27,000December 31, 202 Depreciation Expense1pointsAmortization ExpenseAccumulated Depreciation-BuildingsAccumulated Depreciation-TruckAccumulated Amortization7June 30, 2021Depreciation ExpenseAccumulated Depreciation-TruckJune 30, 2021CashAccumulated Depreciation-TruckTruckGain on Disposal of PPE9.December 31, 202 Depreciation Expense8,500 XAccumulated Depreciation-Buildings8,50010December 31, 202 Amortization ExpenseAccumulated Amortization11December 31, 202 Accumulated Amortization24,600 XMcGrawHill< Prev9 of 10Next >CO

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Answered: PA9-4 (Algo) Recording Transactions and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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PA9-4 (Algo) Recording Transactions and Adjustments for Tangible and Intangible Assets [LO 9-1, LO 9-2, LO 9-3, LO 9-4, LO 9-5, LO 9-6]

The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents.

January 2, 2020	Paid $88,000 cash to purchase storage shed components.
January 3, 2020	Paid $4,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $7,000.
April 1, 2020	Paid $31,000 cash to purchase a pickup truck for use in the business. The truck has an estimated useful life of five years and a residual value of $5,000. This vehicle is to be recorded in the Truck account.
May 13, 2020	Paid $300 cash for minor repairs to the pickup truck's upholstery.
July 1, 2020	Paid $27,000 cash to purchase patent rights on a new paper bag manufacturing process. The patent is estimated to have a remaining useful life of five years.
December 31, 2020	Recorded depreciation and amortization on the pickup truck, storage shed, and patent.

June 30, 2021	Sold the pickup truck for $26,000 cash. (Record the depreciation on the truck prior to recording its disposal.)
December 31, 2021	Recorded depreciation on the storage shed. Recorded the patent amortization. After recording the patent amortization, determined that the patent was impaired and wrote off its remaining book value (i.e., wrote down the book value to zero).

Required:

Prepare the journal entries required on each of the above dates. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)

ezto.mheducation.com
+
Mail - Paula Ortiz - Outlook
D2L Summary - Chapter 9 Quiz - ACC-153-0...
M Question 9 - Ch 9: Homework Assignme...
G January 2, 2020 Paid $88,000 cash to pu...
b Success Confirmation of Question Submi..
Ch 9: Homework Assignment i
Saved
Help
Save & Exit
Submit
Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion.
Return to question
9.
Маy 15,
ש /40
гаu $500 саsi Tor шпог гераггs to Lne prcкиp trиск S uрпоtsteгу.
July 1, 2020 Paid $27,000 cash to purchase patent rights on a new paper bag manufacturing process. The patent is
estimated to have a remaining useful life of five years.
December 31, 2020 Recorded depreciation and amortization on the pickup truck, storage shed, and patent.
June 30, 2021 Sold the pickup truck for $26,000 cash. (Record the depreciation on the truck prior to recording its
1
disposal.)
points
December 31, 2021 Recorded depreciation on the storage shed. Recorded the patent amortization. After recording the
patent amortization, determined that the patent was impaired and wrote off its remaining book value
(i.e., wrote down the book value to zero).
Required:
Prepare the journal entries required on each of the above dates. (If no entry is required for a transaction/event, select "No Journal
Entry Required" in the first account field. Do not round intermediate calculations.)
X Answer is not complete.
No
Date
General Journal
Debit
Credit
1
January 02, 2020 Buildings
88,000
Cash
88,000
January 03, 2020 Buildings
4,000
Cash
4,000
April 01, 2020
Truck
31,000
Cash
31,000
4
May 13, 2020
Repairs and Maintenance Expense
300
Cash
300
July 01, 2020
Patents
27,000
Mc
Graw
Hill
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