Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The foliowing 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

image text in transcribed
image text in transcribed
image text in transcribed
The foliowing 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 585,060 cash to purchase storage shed conponents. January 3,2020 . Paid $5,000 cash to have the storage shed erected. The storage shed has an estimsted 11 fe of 10 years and a residual value of $8,000. Apri1 1, 2020 paid 541,0e9 cash to purchase a pickup truck for use in the business. The truck has an estinated useful 11 fe of five years and a residual value of 56,009 . This vehicle is to be recorded in the Truck account. Hay 13, 2020 Paid $600 cash for minor repoirs to the piekup truck's upholstery. July 1, 2020 Paid 530,000 cash to purchase patent rfghts on a new paper bag manufacturing process. The patent is estimated ta have a reasining useful ilfe of five years. Decenber 31, 2020 Recorded depreciation and anortization on the plekup truck, starage shed, and patent. June 30, 2021 5old the pickup truck for $35,060 cash. (Aecord the depreciation on the truck prlor to recarding its disposal.) December 31,2021 Recorded depreciation on the storage shed. Recorded the patent asortiration. After recording the patent amortization, deteralned that the patent was impoired and wrote off its reaoining book value (i.e.s wrote down the book valie to zero). Record the purchase of storage shed components for $85,000. Record the payment of $5,000 to have the storage shed erected. Record the purchase of a pickup truck for $41,000. Record the repairs of $600 to the pickup truck. Record the purchase of a patent for $30,000 on a new paper bag manufacturing process. Record the depreciation and amortization expense on the pickup truck, storage shed and patent for the year. Note: = journal entry has been entered pickup truck, storage shed and patent for the year. 7. Record the depreciation for the truck up to the date of sale. 8 Record the sale of the truck for $35,000 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

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

The Outsourcing Dilemma Whats Best For Internal Auditing

Authors: Larry E. Rittenberg, Institute Of Internal Auditors Research Foundation, Lee A. Campbell

1st Edition

0894133845, 978-0894133848

More Books

Students also viewed these Accounting questions

Question

Describe how to train managers to coach employees. page 422

Answered: 1 week ago