PA9-4 Recording Transactions and Adjustments for Tangible and Intangible Assets [L0 9-1, LO 9-2, L were completed Gravure Graphics International during 2015 and 2016, The company uses straight-line depreciation for The following transactions adjusting called trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents. January January 2, 2015 Paid $97,000 cash to purchase storage shed components Paid eslimaled life of 10 years and a residual value of S7,000. 3, 2015 1,000 cash to have the storage shed erected. The storage shed has an the business, The truck has April 1, 2015 an estimated useful life of five years and a residual value of $5.000. Paid $700 cash for repairs to the pickup truck. Paid $18,000 cash to purchase patent rights on a new paper bag manufacturing May 13, 2015 1, 2015 July Recorded depreciation and amortization on the pickup truck, storage shed, and patent Sald the pickup truck for $37,000 cash. (Record the depreciation on the truck prior December 31, 2015 30, 2016 June Recorded depreciation on the storace shed. Determined that the patent was December 31, 2016 impaired and wrote off zero). remaining book value (i.e., wrote down the book value to Required: Prepare the joumal entries required on each of the above dates. (If no entry is required for a intermediate calculationNo Journal Entry Required" in the first account field. Do not round Answer is not complete. General Journal No Date Debit Credit January 02, 2015 Buildings 97,000 1 Cash 97,000 4,000 January 03, 2015 Buildings 2 Cash 4.000 April 01, 2015 Equipment 43,000 _ 43.000 Cash Repairs and Maintenance Expense 700 May 13, 2015 Cash 700 July 01, 2015 18,000 Patent Cash 18,000 December 31, 201 Depreciation Expense Amortization Expense Accumulated Depreciation-Equipment Accumulated Depreciation Building Accumulated Amortization Patent Depreciation Expense June 30, 2016 Accumulated Depreciation-Equipment Cash June 30, 2016 37,000 Accumulated Depreciation-Equipment Gain on Disposal Equipment 43.000 December 31, 201 Depreciation Expense g Accumulated Depreciation-Building December 31, 201 Impairment Loss 10 Patent 000 00 0|0|0| Journal entry worksheet 1 2 3 4 7 10 Record the depreciation for the truck up to the date of sale. Note: Enter debits before credits. Date General Journal Debit Credit Depreciation Expense June 30, 2016 Accumulated Depreciation-Equipment Clear entry Record entry View general journal Journal entry worksheet 10 1 2 4 5 6 7 9 Record the depreciation on the storage shed for the year. Note: Enter debits before credits. General Journal Credit Date Debit December 31, 2016 Depreciation Expense Accumulated Depreciation-Building Record entry Clear entry View general journal Journal entry worksheet 2 3 5 6 7 8 10 Record any impairment loss incurred on the patent. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2016 Impairment Loss Patent Record entry Clear entry View general journal
