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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 $91,000 cash to purchase storage shed components. January 3 Paid $2,800 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 Cash 24,000 6 13,450 December 31, 201 Depreciation Expense Accumulated Depreciation Equipment 13,450 X 7 June 30, 2019 4,650 X Depreciation Expense Accumulated Depreciation Equipment 4,650 June 30, 2019 3.100 Accumulated Other Comprehensive Income Accumulated Depreciation--Equipment 3,100 9 December 31, 201 Depreciation Expense Accumulated Depreciation-Buildings 10 December 31, 201 Amortization Expense Accumulated Amortization 8 June 30, 2019 3,100 Accumulated Other Comprehensive Income Accumulated Depreciation-Equipment 3,100 9 December 31, 201 Depreciation Expense Accumulated Depreciation-Buildings 10 December 31, 201 Amortization Expense 0 Accumulated Amortization 0 11 December 31, 201 Accumulated Amortization Patent oo 0 0 12 December 31, 201 Impairment Loss Patent Journal entry worksheet Record the sale of the truck for $29,000 cash. Note: Enter debits before credits. Credit Date June 30, 2019 General Journal Accumulated Other Comprehensive Income Accumulated Depreciation Equipment Debit 3,100 3.100 Journal entry worksheet Record the depreciation on the storage shed for the year. Note: Enter debits before credits. Debit Credit Date General Journal December 31, 2019 Depreciation Expense Accumulated Depreciation-Buildings 10 ..... 12 Record the Patent Amortization expense for the full year. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2019 Amortization Expense Accumulated Amortization 0 ..... 6 6 6 9 10 Record the reversal of the accumulated amortization of patents. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2019 Accumulated Amortization Patent Journal entry worksheet
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