Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help answering these! Not sure if they are correct or not. Thank You! The following transactions and adjusting entries were completed by a

I need help answering these! Not sure if they are correct or not. Thank You!

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

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 $86,000 cash to purchase storage shed components January 3 Paid $2,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $5,000 April 1 Paid $40,000 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 $3,000 May 13 Paid $500 cash for minor repairs to the pickup truck's upholstery July 1 Paid $29,000 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 $34,000 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 Journel Entry Required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet 123 4 5 678 12 Journal entry worksheet 2 3 4 5 6 8 12 Record the depreciation for the truck up to the date of sale. Note: Enter debits before credits. Date General Journal Debit Credit Depreciation Expense Accumulated Depreciation-Equipment June 30, 2019 Record entry Clear entry View general journal Journal entry worksheet 2 3 4 5 6 7 12 Record the sale of the truck for $34,000 cash. Note: Enter debits before credits. Date General Journal Debit Credit June 30, 2019 Cash Accumulated Depreciation-Equipment 34,000 9,250 Gain on Disposal Equipment 3,250 40,000 Record entry Clear entry View general journal Journal entry worksheet n4 5 6 8 12 Record the depreciation on the storage shed for the year. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2019 Depreciation Expense Accumulated Depreciation-Buildings Record entry Clear entry View general journal Journal entry worksheet 6678 910 5 6 8 12 Record the Patent Amortization expense for the full year. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2019 Impairment Loss Patent Record entry Clear entry View general journal Journal entry worksheet 5 6 7 8 9 10 12 Record the reversal of the accumulated amortization of patents. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2019 Record entry Clear entry View general journal Journal entry worksheet 5 6 7 8 10 12 Record any impairment loss incurred on the patent. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2019 mpairment Loss atent Record entry Clear entry View general journal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Advances In Behavioral Research

Authors: Lawrence A. Ponemon, David R.L. Gabhart

1st Edition

ISBN: 0387976191, 978-0387976198

More Books

Students also viewed these Accounting questions