he following transactions and adjusting entries were completed by Gravure Graphics International, a paper packaging company 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, 2019 Paid $92,200 cash to purchase storage shed components January 3, 2019 Paid $4,300 cash to have the storage shed erected storage shed has an estimated life of ten years and a residual value of $12,000 April 1, 2019 Paid $30,300 cash to purchase a pickup truck for use in the business truck has an estimated useful life of five years and a residual value of $7,300 May 13, 2019 Paid $180 cash for repairs to the pickup truck July 1, 2019 Paid $19,300 cash to purchase patent rights on a new paper bag manufacturing process patent is estimated to have a remaining useful life of five years December 31, 2019 Recorded depreciation and amortization on the pickup truck, storage shed, and patent June 30, 2020 Sold the pickup truck for $26,350 cash (Record the depreciation on the truck prior to recording its disposal ) December 31, 2020 Recorded depreciation on the storage shed 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 ) Journal entry worksheet Paid $92,200 cash to purchase storage shed components Note Enter debits before credits Date General Journal Debit Credit Jan 02, 2019 Journal entry worksheet Paid $4,300 cash to have the storage shed erected storage shed has an estimated life of ten years and a residual value of $12,000 Note Enter debits before credits Date General Journal Debit Credit Jan 03, 2019 Journal entry worksheet Paid $30,300 cash to purchase a pickup truck for use in the business truck has an estimated useful life of five years and a residual value of $7,300 Note Enter debits before credits Date General Journal Debit Credit Apr 01, 2019 Journal entry worksheet Paid $180 cash for repairs to the pickup truck Note Enter debits before credits Date General Journal Debit Credit May 13, 2019 Journal entry worksheet Paid $19,300 cash to purchase patent rights on a new paper bag manufacturing process patent is estimated to have a remaining useful life of five years Note Enter debits before credits Date General Journal Debit Credit Jul 01, 2019 Journal entry worksheet Recorded depreciation and amortization on the pickup truck, storage shed, and patent Note Enter debits before credits Date General Journal Debit Credit Dec 31, 2019 Journal entry worksheet Record the depreciation on the truck at the time of disposal Note Enter debits before credits Date General Journal Debit Credit Jun 30, 2020 Journal entry worksheet Sold the pickup truck for $26,350 cash Note Enter debits before credits Date General Journal Debit Credit Jun 30, 2020 Journal entry worksheet Recorded depreciation on the storage shed determined that the patent was impaired and wrote off its remaining book value (i e , wrote down the book value to zero) Note Enter debits before credits Date General Journal Debit Credit Dec 31, 2020

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 26, 2024

he following transactions and adjusting entries were completed by Gravure Graphics International, a paper-packaging company. The company uses straight-line depreciation for trucks and other vehicles,

he following transactions and adjusting entries were completed by Gravure Graphics International, a paper-packaging company. 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, 2019 Paid $92,200 cash to purchase storage shed components.

January 3, 2019 Paid $4,300 cash to have the storage shed erected; storage shed has an estimated life of ten years and a residual value of $12,000.

April 1, 2019 Paid $30,300 cash to purchase a pickup truck for use in the business; truck has an estimated useful life of five years and a residual value of $7,300.

May 13, 2019 Paid $180 cash for repairs to the pickup truck.

July 1, 2019 Paid $19,300 cash to purchase patent rights on a new paper bag manufacturing process; patent is estimated to have a remaining useful life of five years.

December 31, 2019 Recorded depreciation and amortization on the pickup truck, storage shed, and patent.

June 30, 2020 Sold the pickup truck for $26,350 cash. (Record the depreciation on the truck prior to recording its disposal.)

December 31, 2020 Recorded depreciation on the storage shed; 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.)

Journal entry worksheet

Paid $92,200 cash to purchase storage shed components.