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The following transactions and adjusting entries were completed by Gravure Graphics International, a paper - packaging company. The company uses straight - line depreciation for
The following transactions and adjusting entries were completed by Gravure Graphics International, a paperpackaging company. The company uses straightline depreciation for trucks and other vehicles, doubledecliningbalance depreciation for buildings, and straightline amortization for patents. January Paid $ cash to purchase storage shed components. January paid $ cash to have the storage shed erected; storage shed has an estimated life of ten years and a residual value of $ April Paid $ cash to purchase a pickup truck for use in the business; truck has an estimated useful life of five years and a residual value of $ May Paid $ cash for repairs to the pickup truck. July Paid $ cash to purchase patent rights on a new paper bag manufacturing process; patent is estimated to have a remaining useful life of five years. December Recorded depreciation and amortization on the pickup truck, storage shed, and patent. June Sold the pickup truck for $ cash. Record the depreciation on the truck prior to recording its disposal. December Recorded depreciation on the storage shed; determined that the patent was impaired and wrote off its remaining book value. ie 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 transactionevent select No journal entry required" in the first account field.
The following transactions and adjusting entries were completed by Gravure Graphics International, a paperpackaging company. The company uses straightline depreciation for trucks and other vehicles, doubledecliningbalance depreciation for buildings, and straightline amortization for patents.
January Paid $ cash to purchase storage shed components.
January paid $ cash to have the storage shed erected; storage shed has an estimated life of ten years and a residual value of $
April Paid $ cash to purchase a pickup truck for use in the business; truck has an estimated useful life of five years and a residual value of $
May Paid $ cash for repairs to the pickup truck.
July Paid $ cash to purchase patent rights on a new paper bag manufacturing process; patent is estimated to have a remaining useful life of five years.
December Recorded depreciation and amortization on the pickup truck, storage shed, and patent.
June Sold the pickup truck for $ cash. Record the depreciation on the truck prior to recording its disposal.
December Recorded depreciation on the storage shed; determined that the patent was impaired and wrote off its remaining book value. ie 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 transactionevent select No journal entry required" in the first account field.
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