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, 2e2e Paid $94, eee cash to purchase storage shed components. January 3, 2020 Paid $4,eee cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $7,080. April 1, 2020 Paid $37,eee 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, 2e2e Paid $300 cash for minor repairs to the pickup truck's upholstery. July 1, 2020 Paid $21,800 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 $31,eee 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 requlred for a transaction/event, select "No Journal Entry Required" In the first account fleld. Do not round Intermediate calculations.) No Date General Journal Debit Credit 1 94,000 January 02, 2020 Buildings Cash 94,000 2 4,000 January 03, 2020 Buildings Cash 00 00 00 4,000 3 April 01, 2020 37,000 Truck Cash > 37.000 4 May 13, 2020 300 > Repairs and Maintenance Expense Cash O 300 5 July 01, 2020 21.000 > Patents Cash 21,000 6 December 31, 202 Depreciation Expense 19,600 19,600 X Accumulated Depreciation-Buildings Depreciation Expense Accumulated Depreciation-Truck Amortization Expense Accumulated Amortization > 4,800 x 4,800 4,200 X 4,200 x 7 June 30, 2021 3,200 Depreciation Expense Accumulated Depreciation-Truck OO 3.200 8 June 30, 2021 31.000 > Cash Truck Loss on Disposal of PPE x 32,000 X 1.000 x 9 December 31, 202 Depreciation Expense 15,680 Accumulated Depreciation-Buildings 15.680 10 December 31, 202 Amortization Expense 4,200 Accumulated Amortization 4,200 11 December 31, 202 Accumulated Amortization 8,400 Amortization Expense 8.400 12 December 31, 202 Impairment Loss 12,600 Copyrights 12,600 X
