Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 $100,000 cash to purchase storage shed components. | ||
January | 3 | Paid $5,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $8,000. | ||
April | 1 | Paid $46,000 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 $6,000. | ||
May | 13 | Paid $400 cash for minor repairs to the pickup truck's upholstery. | ||
July | 1 | Paid $15,000 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 $39,000 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). |
I need help with the amounts on journal entries 9-12
Answer is complete but not entirely correct. No Date General Journal Credit Debit 100,000 1 January 02, 2018 Building Cash 100,000 2 5.000 January 03, 2018 Building Cash 5,000 3 April 01, 2018 Equipment 46,000 Cash 46,000 4 May 13, 2018 400 Repairs and Maintenance Expense Cash 400 5 July 01, 2018 Patent 15,000 Cash 15,000 6 December 31, 201 Depreciation Expense 27,000 1,500 Amortization Expense Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Accumulated Amortization OOO 21,000 6,000 1,500 7 June 30, 2019 4.000 Depreciation Expense Accumulated Depreciation-Equipment 4,000 8 June 30, 2019 Cash 39,000 10,000 Accumulated Depreciation Equipment Equipment Gain on Disposal 46,000 3,000 9 18,000 December 31, 201 Depreciation Expense Accumulated Depreciation-Buildings 18,000 10 1,500 December 31, 201 Amortization Expense Accumulated Amortization 1,500 X 11 1,500 December 31, 201 Accumulated Amortization Patent 1,500 X 12 13,500 December 31, 201 Impairment Loss Patent 13,500 9 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
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