Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $98,000 cash to purchase storage shed components. January 3 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 Paid $44,000 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. May 13 Paid $800 cash for minor repairs to the pickup truck's upholstery. July 1 Paid $17,000 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 $37,000 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).

I am stuck on Journal Entries 10, 11, and 12

image text in transcribedimage text in transcribed

No Date General Journal Debit Credit 1 January 02, 2018 Building 98,000 Cash 98,000 2 3,000 January 03, 2018 Building Cash 3,000 3 April 01, 2018 44,000 Equipment Cash 44,000 4 May 13, 2018 Repairs and Maintenance Expense 800 > Cash 800 > 5 July 01, 2018 Patent 17,000 > Cash 17,000 6 December 31, 201 Depreciation Expense 26,200 1,700 Amortization Expense Accumulated Depreciation-Buildings Accumulated Depreciation Equipment 20,200 6,000 Accumulated Amortization 1,700 7 June 30, 2019 4,000 Depreciation Expense Accumulated Depreciation Equipment 4,000 8 June 30, 2019 Cash 37,000 10,000 Accumulated DepreciationEquipment Equipment Gain on Disposal 44,000 3,000 9 December 31, 201 Depreciation Expense 16,160 Accumulated DepreciationBuildings 16,160 10 December 31, 201 Amortization Expense 17,000 X Accumulated Amortization 1,700 X 11 December 31, 201 No Transaction Recorded 12 December 31, 201 No Transaction Recorded

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

Accounting Principles Volume 2

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

9th Canadian Edition

978-1119786634, 1119786630

More Books

Students also viewed these Accounting questions

Question

What is the status (prevalence) of unions today?

Answered: 1 week ago