70.2K

Verified Solution

Link Copied!

The following transactions and adjusting entries were completed by a paper-packing company called Gravure Graphics International during 2018 and 2019.

2018

January 2 paid $105,000 cash to purchase storage shed computers

The tollowing transactions and adjusting entries wer during 2018 and 2019. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight line amortization for patents e completed by a paper-packaging company called Gravure Graphics International 2018 January 2 Paid $105,eee cash to purchase storage shed components. anuary 3 Paid $4,eee cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $7,00e. April 1 Paid $51,ee0 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 $5,00e. May 13 Paid $98 Duly 1 Paid $10,e00 e cash for minor repairs to the pickup truck's upholstery. cash to purchase patent rights on a new paper bag manufacturing process. The patent is estimated to have a remaining useful life of five years. December 31 Recorded depreciation and amortization on the pickup truck, storage shed, and patent. 2019 bune se sold the pickup truck for $43,0ee cash. (Record the depreciation on the truck prior to recording its disposal.) December 31 Recorded depreciation on the storage shed. Also determined that the patent was impaired and wrote off its remaining book value (.e., wrote down the book value to zero) Required: Prepare the journal entries required on each of the above dates (f no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet 12 3 4 5 6 8 Record the purchase of storage shed components for $105,000 11 Note: Enter debits before credits Date General Journal Debit Credit January 02, 2018

Answer & Explanation Solved by verified expert

See Answer