Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International. The company uses straight-line depreciation for trucks, bulldings, and

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International. The company uses straight-line depreciation for trucks, bulldings, and other vehicles, and stralght-ine amortization for patents. January 2, 2020 Paid $104,000 cash to purchase storage shed conpopents. January 3, 2020 Paid \$2, 000 cash to have the storage shed erected. The stor age shed has an est inated 11 fe of 10 years and a residual value of $5, eee. April 1, 2020 Pafd $50,600 cash to purchase a plckup truck for use in the business. The truck has an estimated usefol 1 ife of five years and a residual value of $3,000. This vehicle is to be recorded in the fruck account. May 13, 2020 Paid ssea cash for ninor repalins to the pickup truck's upholstery. July 1, 2020 Pald $11,000 cash to purchase patent riebts on a ner paper bog nanufacturing process. The patent is estimated to have a renaining useful life of five-yeses. Decesber 31, 2820 Mecorded depreciation and anortization on the pickup truck, storage shed, and patent. Deceseber 31, 2021 Recorded depreciation on the storege shed, Recorded the patent anortization. After recording the patent anortization, deternined that the patent was not inpaired. Required: Prepare the journal entries required on each of the above dates. (If no entry is required for a transoction/event, select "No Journal Entry Required" in the first occount fleld. Do not round intermediate calculations.) Journal entry worksheet Record the purchase of storage shed components for $104,000. Note: Enter debits before credits. Journal entry worksheet Record the payment of $2,000 to have the storage shed erected. Note: Enter debits before credits. Journal entry worksheet Record the purchase of a pickup truck for $50,000. Note: Enter debits before credits. Journal entry worksheet Record the repairs of $800 to the pickup truck. Note: Enter debits before credits. Journal entry worksheet Record the purchase of a patent for $11,000 on a new paper bag manufacturing process. Note: Enter debits before credits. Journal entry worksheet Record the depreciation and amortization expense on the pickup truck, storage shed and patent for the year. Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Record the sale of the truck for $43,000 cash. Note: Enter debits before credits. Journal entry worksheet Record the depreciation on the storage shed for the year. Note: Enter debits before credits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions