Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help solve the following. (12 entries) The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International. The company
Please help solve the following. (12 entries)
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, 2020 Paid $104,000 cash to purehase storage shed componente. January 3, 2020 Paid \$2,000 cash to have the storage shed erected. The storage shed has an estimated 11 fe of 10 years and a residual value of $5,000. Apri1 1, 2020 Paid $50,000 eash to purehane a pickup truck tor une in the buninese. The truck has an estimated useful life of five years and a residual value of $3,000. This vehicle is to be recorded in the Truck account. May 13, 2020 Paid $800 cash for minor repairs to the piekup truck's upholstery. July 1 , 2020 Paid $11,000 eanh to purchase patent righte on a new paper bag manufacturing process. The patent is estimated to have a remaining useful life of five years. December 31, 2020 Recorded depreeiation and amortization on the pickup truck, storage shed, and patent. June 30, 2021 sold the piekup truck for $43,000 eash. (Record the depreciation on the truck prior to recording its disposal.) December 31,2021 Hecorded depreciation on the storage shed. Recorded the patent anortization. After recording the patent anortization, 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 required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Journal entrv worksheet Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started