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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 trucks and other vehicles,

image text in transcribedimage text in transcribed 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, 2019 Paid $93,000 cash to purchase storage shed components. January 3, 2019 Paid $4,500 cash to have the storage shed erected; storage shed has an estimated life of ten years and a residual value of $10,000. April 1, 2019 Paid $32,500 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 $7,500. May 13, 2019 Paid $200 cash for repairs to the pickup truck. July 1, 2019 Paid $19,500 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, 2019 Recorded depreciation and amortization on the pickup truck, storage shed, and patent. June 30,2020 Sold the pickup truck for $28,250 cash. (Record the depreciation on the truck prior to recording its disposal.) December 31, 2020 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.) Answer is not complete. \begin{tabular}{|c|c|c|c|c|c|} \hline No & Date & \multicolumn{2}{|c|}{ General Journal } & Debit & Credit \\ \hline \multirow[t]{2}{*}{1} & Jan 02, 2019 & Building & 0 & 93,000 & \\ \hline & & Cash & 0 & & 93,000 \\ \hline \multirow[t]{2}{*}{2} & Jan 03,2019 & Building & 0 & 4,500 & \\ \hline & & Cash & 8 & & 4,500 \\ \hline \multirow[t]{2}{*}{3} & Apr 01, 2019 & Accumulated depreciation-Vehicles & & 32,500 & \\ \hline & & Cash & 0 & & 32,500 \\ \hline \multirow[t]{2}{*}{4} & May 13,2019 & Repairs and maintenance expense & 8 & 200 & \\ \hline & & Cash & 0 & & 200 \\ \hline \multirow[t]{2}{*}{5} & Jul 01, 2019 & Patent & 8 & 19,500 & \\ \hline & & Cash & 0 & & 19,500 \\ \hline \multirow[t]{2}{*}{6} & Dec 31, 2019 & Depreciation expense & & 19,500 & \\ \hline & & Accumulated depreciation-BIdg. & x & & 19,500x \\ \hline \multirow[t]{4}{*}{7} & Jun 30,2020 & Cash & & 28,250 & \\ \hline & & Accumulated depreciation-Vehicles & & 6,250 & \\ \hline & & Gain on bond retirement & x & & 32,500 \\ \hline & & & & & 200 \\ \hline \multirow[t]{2}{*}{8} & Jun 30,2020 & Depreciation expense & & 9,000 & \\ \hline & & Accumulated depreciation-Bldg. & & & 9,000 \\ \hline \multirow[t]{3}{*}{9} & Dec 31,2020 & Loss on bond retirement & x & 17,550 & \\ \hline & & Accumulated amortization & x & 1,950 & \\ \hline & & Patent & 0 & & 19,500 \\ \hline \end{tabular}

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