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. January 2, 2016 Paid $95,800 cash to purchase storage shed components. January 3, 2016 Paid $5,200 cash to have the storage shed erected; storage shed has an estimated life of ten years and a residual value of $12,000. April 1, 2016 Paid $40,200 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 $8,200. May 13, 2016 Paid $270 cash for repairs to the pickup truck. July 1, 2016 Paid $20,200 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 31, 2016 Recorded depreciation and amortization on the pickup truck, storage shed, and patent. June 30, 2017 Sold the pickup truck for $34,900 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.) Journal entry worksheet Paid $95,800 cash to purchase storage shed components. Note: Enter debits before credits. General Journal Debit Credit Date Jan 02, 2016 Record entry Clear entry View general journal Journal entry worksheet N Paid $5,200 cash to have the storage shed erected; storage shed has an estimated life of ten years and a residual value of $12,000. Note: Enter debits before credits. General Journal Debit Credit Date Jan 03, 2016 Record entry Clear entry View general journal Journal entry worksheet Paid $40,200 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 $8,200. Note: Enter debits before credits. General Journal Debit Credit Date Apr 01, 2016 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 9 > Paid $270 cash for repairs to the pickup truck. Note: Enter debits before credits. General Journal Debit Credit Date May 13, 2016 Record entry Clear entry View general journal Journal entry worksheet Paid $20,200 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 Record entry Clear entry View general journal Journal entry worksheet Recorded depreciation and amortization on the pickup truck, storage shed, and patent. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31, 2016 Record entry Clear entry View general Journal Journal entry worksheet Record the depreciation on the truck at the time of disposal. Note: Enter debits before credits. General Journal Debit Credit Date Jun 30, 2017 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 9 > Sold the pickup truck for $34,900 cash. Note: Enter debits before credits. General Journal Debit Credit Date Jun 30, 2017 Record entry Clear entry View general journal 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. General Journal Debit Credit Date Dec 31, 2017 Record entry Clear entry View general journal
