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Pls, I need help! The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International during 2018 and 2019. The
Pls, I need help!
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 $91,000 cash to purchase storage shed components. January 3 Paid $2,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $5,000. April 1 Paid $34,000 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 $3,000. May 13 Paid $600 cash for minor repairs to the pickup truck' s upholstery. July 1 Paid $24,000 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 $29,000 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). 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.) Answer is not complete. No General Journal Credit Date January 02, 2018 Building Cash Debit 91,000 91,000 2,000 January 03, 2018 Building Cash 2,000 April 01, 2018 34,000 Equipment Cash 34,000 | 4 May 13, 2018 600 Repairs and Maintenance Expense Cash 6000 600 July 01, 2018 24,000 Patent Cash 24,000 6 December 31, 201 Depreciation Expense 18,600 X Accumulated Depreciation-Buildings 18,600 X 7 June 30, 2019 3,100 Depreciation Expense Accumulated Depreciation-Equipment 3,100 8 June 30, 2019 0 29,000 12,750 Cash Loss on Disposal Accumulated Depreciation-Equipment Equipment 7,750 X 34,000 0 December 31, 201 Depreciation Expense 14,880 Accumulated Depreciation-Buildings 14,880 10 December 31, 201 Amortization Expense 4,800 Accumulated Amortization 4.800 11 4,800 X December 31, 201 Amortization Expense Accumulated Amortization 4,800 X 12 16,800 December 31, 201 Impairment Loss Accumulated Depreciation Equipment 16,800Step by Step Solution
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