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. Do not round intermediate calculations.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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e following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics
erational. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for
ildings, and straight-line amortization for patents.
January 2, 2020 Paid $104,000 cash to purchase storage shed components.
January 3, 2020 Paid $2,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years
and a residual value of $5,000.
April 1, 2020 Paid $50,000 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 $3,000. This vehicle is to be recorded in the Truck
account.
May 13, 2020 Paid $800 cash for minor repairs to the pickup truck's upholstery.
July 1, 2020 Paid $11,000 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.
ecember 31, 2020 Recorded depreciation and amortization on the pickup truck, storage shed, and patent.
June 30, 2021 Sold the pickup truck for $43,000 cash. (Record the depreciation on the truck 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 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. Do not round intermediate calculations.)
View transaction list
Journal entry worksheet
1
2
3
4
5
6
7
8
12
12
Record the purchase of storage shed components for $104,000.
Note: Enter debits before credits.
Date
January 02, 2020
General Journal
Debit
Credit
>
1
Transcribed Image Text:e following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics erational. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for ildings, and straight-line amortization for patents. January 2, 2020 Paid $104,000 cash to purchase storage shed components. January 3, 2020 Paid $2,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $5,000. April 1, 2020 Paid $50,000 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 $3,000. This vehicle is to be recorded in the Truck account. May 13, 2020 Paid $800 cash for minor repairs to the pickup truck's upholstery. July 1, 2020 Paid $11,000 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. ecember 31, 2020 Recorded depreciation and amortization on the pickup truck, storage shed, and patent. June 30, 2021 Sold the pickup truck for $43,000 cash. (Record the depreciation on the truck 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 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. Do not round intermediate calculations.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 12 12 Record the purchase of storage shed components for $104,000. Note: Enter debits before credits. Date January 02, 2020 General Journal Debit Credit > 1
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