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Something's wrong here! Not sure where my mistake is. Chapter 9 Homework (Algo) Saved Check my work mode : This shows what is correct or
Something's wrong here! Not sure where my mistake is.
Chapter 9 Homework (Algo) Saved Check my work mode : This shows what is correct or incorrect for the work you have completed 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. points 2018 January 2 Paid $99,000 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 $45,000 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 $900 cash for minor repairs to the pickup truck's upholstery. July 1 Paid $16,000 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 $38,000 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.) X Answer is not complete. No General Journal Credit Date January 02, 2018 Building Cash Debit 99,000 1 99,000 2 2,000 January 03, 2018 Building Cash 2,000 3 April 01, 2018 Equipment 45,000 Cash 45,000 4 May 13, 2018 900 Repairs and Maintenance Expense Cash 900 5 July 01, 2018 16,000 Patent Cash 16,000 Chapter 9 Homework (Algo) Saved Check my work mode : This shows what is correct or incorrect for the work you have con 4 May 13, 2018 900 Repairs and Maintenance Expense Cash 900 5 July 01, 2018 16,000 Patent Cash 16,000 points 00 00 December 31, 201 Depreciation Expense 15,900 X Amortization Expense 1,600 9,600 X 6,300 1,600 7 June 30, 2019 4,200 Depreciation Expense Accumulated Depreciation Equipment 00 4,200 June 30, 2019 38,000 10,500 Cash Accumulated Depreciation Equipment Gain on Disposal Equipment OOO 3,500 45,000 9 December 31, 201 Depreciation Expense 9,600 Accumulated Depreciation-Buildings 9,600 X December 31, 201 Amortization Expense 3,200 Accumulated Amortization 3,200 4,800 December 31, 201 Accumulated Amortization Patent 4,800 11,200 December 31, 201 Impairment Loss Patent 11,200Step by Step Solution
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