The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents. January 2, 2020 Paid $90,000 cash to purchase storage shed components. January 3, 2020 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, 2020 Paid $33,000 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. This vehicle is to be recorded in the Truck account. May 13, 2020 Paid $100 cash for minor repairs to the pickup truck's upholstery. July 1, 2020 Paid $25,000 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, 2020 Recorded depreciation and amortization on the pickup truck, storage shed, and patent. June 30, 2021 Sold the pickup truck for $28,000 cash. (Record the depreciation on the truck prior to recording its disposal.) December 31, 2021 Recorded depreciation on the storage shed. Recorded the patent amortization. After recording the patent amortization, 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.) 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 and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents. January 2, 2020 Paid $90,000 cash to purchase storage shed components. January 3, 2020 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, 2020 Paid $33,000 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. This vehicle is to be recorded in the Truck account. May 13, 2020 Paid $100 cash for minor repairs to the pickup truck's upholstery. July 1, 2020 Paid $25,000 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, 2020 Recorded depreciation and amortization on the pickup truck, storage shed, and patent. June 30, 2021 Sold the pickup truck for $28,000 cash. (Record the depreciation on the truck prior to recording its disposal.) December 31, 2021 Recorded depreciation on the storage shed. Recorded the patent amortization. After recording the patent amortization, 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.)
Expert Answer:
Answer rating: 100% (QA)
Answer 1 Journal Entries January 2 2020 Storage Shed Debit 87000 Cash Credit87000 January 3 2020 Sto... View the full answer
Posted Date:
Students also viewed these accounting questions
-
The following transactions and adjusting entries were completed by a paper- packaging company called Gravure Graphics International during 2015 and 2016. The company uses straight- line depreciation...
-
Explain how ICMP is used to test network connectivity. Use ping and traceroute utilities to test network connectivity. Q2 Explain the purpose of the transport layer in managing the transportation of...
-
You are a system administrator, and you have been selected to develop a Network Architecture Security Plan Proposal for an enterprise or organization with which you are familiar or for a fictitious...
-
Show that in the limit ??x ?? 0 and ??t ?? 0, the difference Equation (3.12) is equivalent to the differential Equation (2.5). GIVENThe difference equation for one-dimensional transient...
-
To earn extra money in the summer, you grow tomatoes and sell them at a local farmers' market for 30 cents per pound. By adding compost to your garden, you can increase your yield as shown in the...
-
The accounting records for a restaurant indicate that food sales were $18,000, food used was $5,800, and employee meals at cost were $50. What is the cost of sales?
-
Figure P11.53 shows a two-stage cascade diff-amp with resistive loads. Power supply voltages of \(\pm 10 \mathrm{~V}\) are available. Assume transistor parameters of \(V_{T N}=1 \mathrm{~V},...
-
A diesel-powered tractor with a cost of $185,000 and estimated residual value of $37,000 is expected to have a useful operating life of 40,000 hours. During February, the generator was operated 140...
-
BGP Electrical Supply is developing its annual financial statements at December 3 1 , current year. The statements are complete except for the statement of cash flows. The completed comparative...
-
The table shows cost and revenue data for an outpatient surgery clinic. Calculate the clinics marginal cost, marginal revenue, and profits at each level of output. Which price maximizes its profits?...
-
a) What do you understand by the term autocorrelation? What are the consequences of autocorrelation in estimation? (5 marks) b) What are the assumptions underlying the Durbin Watson statistics in...
-
61. The solubility product of CuS, AgS and HgS are 10 37, 104 and 1054 respectively. The solubility of these sulphides will be in the order (1) HgS> AgS > Cus (2) AgS>HgS > CuS (3) CuS AgS > HgS (4)...
-
Sam and Esterina are married, file a joint return, and have two children, ages 9 and 12. Their combined AGI is $67,000. Sam's earned income is $43,000; Esterina's is $27,000. They incur $6,900 of...
-
Creative Computing sells a tablet computer called the Protab. The $875 sales price of a Protab Package includes the following: One Protab computer. A six-month limited warranty. This warranty...
-
Suppose that a one-day 99% VaR is estimated as $10 million from 200 observations. The one-day changes are approximately normal with mean zero and standard deviation 6.5 million. What is the 95%...
-
Write a paper about Software Architecture in a Changing World including problem and strength and weakness
-
Archangel Corporation prepared the following variance report. Instructions Fill in the appropriate amounts or letters for the question marks in the report. ARCHANGEL CORPORATION Variance...
-
A machine is loaded by a periodic "sawtooth" shaped force, as depicted in Figure 3.61. The load is assumed to have existed for a very long time. Model this force using: (a) a one-term Fourier series,...
-
Derive the general equations of motion, Equations 3.55 and 3.56 , \[ \begin{aligned} & m\left(\ddot{x}-\varepsilon \dot{\Omega}^{2} \cos \Omega-\varepsilon \ddot{\Omega} \sin \Omega ight)+k_{x} x=0...
-
A simple model of a seismometer is shown in Figure 3.60. The top view shows how a pen attached to the seismometer mass traces out a pattern on a paper grid that is on a roller. The side view provides...
Study smarter with the SolutionInn App