Question

1. value: 10.00 points The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International during 2015 and 2016. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents. January January 2, 2015 3, 2015 April 1, 2015 May July 13, 2015 1, 2015 Paid $90,000 cash to purchase storage shed components. 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. Paid $33,000 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. Paid $100 cash for repairs to the pickup truck Paid $25,000 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. Recorded depreciation and amortization on the pickup truck, storage shed, and patent. Sold the pickup truck for $28,000 cash. (Record the depreciation on the truck prior to recording its disposal.) 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). December 31, 2015 June 30, 2016 December 31, 2016 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.)

Answer 1

Debit $ 90,000 eredt $99000 $ 5.000 $5,000 $ 33,000 $33,000 $100 $100 $25,000 $25,000 I Answer: Jocional entries : Date particulars F and Buildings Ale DO 1. To cash Teing record purchase of shed for cart Jana Buildings Ale 1. To cash Being record erection #shed forcat Apr-1 vehicles / Truck Ale To cash Being record purchase of Truck forceste May Go Repairs and maintenance exp. ale or . To cash 1 Being record Repairs of Trucks July, patents ale or . To cash Being record purchase of patents forced Deco Depreciation expeuses Ale or [($ 33,000 - $6.0003/5*9h22 TO Accumulated depreciate - - Truck Being record depreciation on Tock for quouthis? Depreciation expense ale or $ 90,000+45000-$076 *] TO Accumelated depsecialian Being record depreciation on building] Amortization ex peuge ale or ($ 25,000s, '* he] To patents, Being record amortization of patenta for 6 months 2016. Depreciation expeuse Ale or ($33,000-$6000)/5 *6112] TO Accumulated depreciation Being record depreciation on truck for бщ«3]. $4,050 $4,050 $19.000 $19,000 - buildings . $2,500 $2,500 $2,700 $2,700

Credit $33,000 $1,750 patticidars 12A Debit Cash Ale Dr $ 28,000 Accumulated Depreciation Truck Acom | $ 6750 L*4050+$2,100] To Truck To Gain ou Disposal of Ticke Being record sale of Trucke for gain] Depreciation expeuse At $15,200 $1$90,000+$5000-$19000)ox2] TO Accumulated depreciation buildings Being secord depreciation oubeilling Impairment loss Ale or $22,500 Impact25000-$2,500) To palents Being record Impairment of 1 patents] $15200 $22,500