The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics...

80.2K

Verified Solution

Question

Accounting

image
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 $100,000 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 $46,000 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 $480 cash for minor repairs to the pickup truck's upholstery. July 1, 2020 paid $15,000 cash to purchase patent rights on a new paper bag manufacturing process. The patent is estimated to have remaining useful life of five years. December 31, 2020 Recorded depreciation and anortization on the pickup truck, storage shed, and patent. June 30, 2021 Sold the pickup truck for $39,000 cash. (Record the depreciation on the track 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 impared and wrote off its remaining book value (he wrote down the book value to zero). Required: Prepare the journal entres 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.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students