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PA9-4 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

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PA9-4 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 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 $101,000 cash to purchase storage shed components. January 3 Paid $6,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $9,000 April 1 Paid $47.000 cash to purchase a pickup truck fair use in the business. The truck has an estimated useful life of five years and a residual value of $7,000. May 13 Paid $500 cash for minor repairs to the pickup truck's upholstery July 1 Paid $14,000 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 $40,000 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 (ie wrote down the book value to tere) 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.) Journal entry worksheet 3. Record the purchase of a pickup truck for $47,000. Note: Enter debits before credits Date General Journal Credit Debit 47.000 April 01, 2018 Patent Cash 47,000 + Record entry Clear entry View general Journal PA9-4 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 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 $101,000 cash to purchase storage shed components. January 3 Paid $6,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $9,000 April 1 Paid $47.000 cash to purchase a pickup truck fair use in the business. The truck has an estimated useful life of five years and a residual value of $7,000. May 13 Paid $500 cash for minor repairs to the pickup truck's upholstery July 1 Paid $14,000 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 $40,000 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 (ie wrote down the book value to tere) 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.) Journal entry worksheet 3. Record the purchase of a pickup truck for $47,000. Note: Enter debits before credits Date General Journal Credit Debit 47.000 April 01, 2018 Patent Cash 47,000 + Record entry Clear entry View general Journal

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