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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 $103,000 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 56.000. April 1 Paid $49,98e 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 $700 cash for minor repairs to the pickup truck's upholstery. July 1 Paid $12,000 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. June 30 Sold the pickup truck for $42,000 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.c., 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 Journal Entry Required" in the first account field. Do not round intermediate calculations.) 2019 1 Record the purchase of storage shed components for $ 103,000. 2 Record the payment of $3,000 to have the storage shed erected. 3 Record the purchase of a pickup truck for $49,000. Record the repairs of $700 to the pickup truck. 5 Record the purchase of a patent for $12,000 on a new paper bag manufacturing process. 6 Record the depreciation and amortization expense on the pickup truck, storage shed and patent for the year. Note : = journal entry has been entered Record entry Clear entry 7 Record the depreciation for the truck up to the date of sale. 8 Record the sale of the truck for $42,000 cash. Record the depreciation on the storage shed for the year. 10 Record the Patent Amortization expense for the full year. 11 Record the reversal of the accumulated amortization of patents. 12 Record any impairment loss incurred on the patent. Note : = journal entry has been entered Record entry Clear entry

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