Question

There are 12 journal entries

The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International 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. 2018 January 2 Paid $86,000 cash to purchase storage shed components. January 3 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 Paid $40,000 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. May 13 Paid $500 cash for minor repairs to the pickup truck's upholstery. July 1 Paid $29,000 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. December 31 Recorded depreciation and amortization on the pickup truck, storage shed, and patent. 2019 June 30 Sold the pickup truck for $34,000 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 (1.0. 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 3 0 6 6 6 6 ..... 12 > Record the purchase of storage shed components for $86,000. Note: Enter debits before credits. Date General Journal Debit Credit January 02, 2018 Record entry Clear entry View general journal

Answer 1

January 2 2018

Storage shed components Debit 86000

Bank account Credit 86000

January 3 2018

Storage shed Debit 88000

Storage shed components Credit 86000

Bank account Credit 2000

April 1 2018

Pick up truck Debit 40000

Bank account Credit 40000

May 13 2018

Repair account Debit 500

Bank account Credit 500

July 1 2018

Patent rights Debit 29000

Bank account Credit 29000

December 31 2018

Depreciation of patents Debit 2900

Depreciation of Pick up truck Debit 5550

Depreciation of Storage shed Debit 17600

Accumulated Depreciation Credit 26050

June 30 2019

Depreciation of Pick up truck Debit 3700

Bank account Debit 34000

Accumulated Depreciation Debit 5550

Gain on sale of pick up truck Credit 3250

Pick up truck Credit 40000

December 31 2019

Depreciation of Storage shed Debit 14080

Accumulated Depreciation Credit 14080

Depreciation of patents Debit 5800

Accumulated Depreciation Credit 5800

Accumulated Depreciation Debit 8700

Loss on write-off of patent Debit 20300

Patent rights   Credit 29000