The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International during 2018 and 2019. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents. 2018 January 2 Paid $87,000 cash to purchase storage shed components. January 3 Paid $3,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $6,000. April 1 Paid $39,000 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 $4,000. May 13 Paid $400 cash for minor repairs to the pickup truck's upholstery. July 1 Paid $28,000 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 Recorded depreciation and amortization on the pickup truck, storage shed, and patent. 2019 June 30 Sold the pickup truck for $33,000 cash. (Record the depreciation on the truck prior to recording its disposal.) December 31 Recorded depreciation on the storage shed. Also 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.) DO NOT GIVE SOLUTION IN IMAAGE

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International during 2018 and 2019. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents.

2018
January	2	Paid $87,000 cash to purchase storage shed components.
January	3	Paid $3,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $6,000.
April	1	Paid $39,000 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 $4,000.
May	13	Paid $400 cash for minor repairs to the pickup truck's upholstery.
July	1	Paid $28,000 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	Recorded depreciation and amortization on the pickup truck, storage shed, and patent.
2019
June	30	Sold the pickup truck for $33,000 cash. (Record the depreciation on the truck prior to recording its disposal.)
December	31	Recorded depreciation on the storage shed. Also 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.)

DO NOT GIVE SOLUTION IN IMAAGE

No
1
2
3
4
5
6
7
8
9
10
11
12
Date
January 02, 201 Building
Cash
January 03, 201 Building
Cash
April 01, 2018 Equipment
Cash
May 13, 2018 Repairs and Maintenance Expense
Cash
July 01, 2018
Answer is not complete.
General Journal
Patent
Cash
December 31, 2 Depreciation Expense
Amortization Expense
Accumulated Depreciation-Buildings
Accumulated Depreciation Equipment
June 30, 2019
June 30, 2019 Depreciation Expense
Accumulated Depreciation-Equipment
Cash
Accumulated Depreciation-Equipment
Equipment
Gain on Disposal
December 31, 2 Depreciation Expense
Accumulated Depreciation-Buildings
December 31, 2 Depreciation Expense
Accumulated Depreciation-Buildings
December 31, 2 No Journal Entry Required
December 31, 2 No Journal Entry Required
33 33 33 33 33
30 3333 33 333 ●
X
Debit
87,000✔
X
3,000
39,000✔
400✔
28,000✔
14,400X
3,500✔
33,000
8,750
X 14,400 X
X
14,400
Credit
87,000✔
3,000
39,000
400✔
28,000✔
14,400 X
3,500
39,000✔
2,750
14,400✔
14,400 X

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