The following transactions and adjusting entries were completed by Gravure Graphics International, a paper-packaging company. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents. April January 2, 2016 Paid $96,600 cash to purchase storage shed components. January 3, 2016 Paid $5,400 cash to have the storage shed erected; storage shed has an estimated life of ten years and a residual value of $11,000. 1, 2016 Paid $42,400 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 $8,400. May 13, 2016 Paid $290 cash for repairs to the pickup truck. July 1, 2016 Paid $20,400 cash to purchase patent rights a new paper bag manufacturing process; patent is estimated to have a remaining useful life of five years. December 31, 2016 Recorded depreciation and amortization on the pickup truck, storage shed, and patent. June 30, 2017 Sold the pickup truck for $36,800 cash. (Record the depreciation on the truck prior to recording its disposal.) December 31, 2017 Recorded depreciation on the storage shed; 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.) View transaction list Journal entry worksheet Paid $96,600 cash to purchase storage shed components. Note: Enter debits before credits. Date General Journal Debit Credit Jan 02, 2016 Journal entry worksheet Paid $290 cash for repairs to the pickup truck. Note: Enter debits before credits. Date General Journal Debit Credit Journal entry worksheet 1 2 3 4 5 6 7 8 Paid $20,400 cash to purchase patent rights on a new paper bag manufacturing process; patent is estimated to have a remaining useful life of five years. Note: Enter debits before credits. General Journal Debit Credit Date Jul 01, 2016 Journal entry worksheet Record the depreciation on the truck at the time of disposal. Note: Enter debits before credits. Journal entry worksheet Sold the pickup truck for $36,800 cash. Note: Enter debits before credits. General Journal Debit Credit Date Jun 30, 2017 Journal entry worksheet Recorded depreciation on the storage shed; determined that the patent was impaired and wrote off its remaining book value (i.e., wrote down the book value to zero). Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2017 Journal entry worksheet Paid $5,400 cash to have the storage shed erected; storage shed has an estimated life of ten years and a residual value of $11,000. Note: Enter debits before credits
