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How do you solve this? PA9-4 (Algo) Recording Transactions and Adjustments for Tangible and Intangible Assets (LO 9-1, LO 9. 2, LO 9-3, LO 9-4,
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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 $87,000 cash to purchase storage shed components. January 3, 2020 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, 2020 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. This vehicle is to be recorded in the Truck account. May 13, 2020 Paid $400 cash for minor repairs to the pickup truck's upholstery. July 1, 2020 Paid $28,000 cash to purchase patent rights on a new paper bag manufacturing process. The patent 10 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 $33,000 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 inpaired and wrote of its remaining book value (1.0., 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.) View transaction list View Journal entry worksheet Credit No General Journal Debit 87,000 1 Date January 02, 2020 Buildings Cash 87.000 3,000 2 January 03, 2020 Buildings Cash 3,000 99,000 3 April 01, 2020 Truck Cash 39.000 400 4 May 13, 2020 400 Repairs and Maintenance Expense Cash AM 20 Dotanto Step by Step Solution
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