Question

Journal entry help for a paper-packaging company called Gravure Graphics International during 2018 and 2019.

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 $91,000 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 $34,000 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 $600 cash for minor repairs to the pickup truck's upholstery.
July		1		Paid $24,000 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 $29,000 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 (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.)

• Record the purchase of a storage shed components for $91,000.

• Record the payment of $2,000 to have the storage shed erected.

• Record the purchase of a pickup truck for $34,000.

• Record the repairs of $600 to the pickup truck.

• Record the purchase of a patent for $24,000 on a new paper bag manufacturing process.

• Record the depreciation and amortization expense on the pickup truck, storage shed and patent for the year.

• Record the depreciation for the truck up to the date of sale.

• Record the sale of the truck for $29,000 cash.

• Record the depreciation on the storage shed for the year.

• Record the Patent Amortization expense for the full year.

• Record the reversal of the accumulated amortization of patents.

• Record any impairment loss incurred on the patent.

SOME of the previous answers given below were not correct

The answer is not complete.

No	Date	General Journal	Debit	Credit
1	January 02, 2018	Buildingselected answer correct	91,000selected answer correct	not attempted
		Cashselected answer correct	not attempted	91,000selected answer correct
2	January 03, 2018	Buildingselected answer correct	2,000selected answer correct	not attempted
		Cashselected answer correct	not attempted	2,000selected answer correct
3	April 01, 2018	Equipment selected answer correct	34,000selected answer correct	not attempted
		Cashselected answer correct	not attempted	34,000selected answer correct
4	May 13, 2018	Repairs and Maintenance Expense selected answer correct	600selected answer correct	not attempted
		Cash selected answer correct	not attempted	600selected answer correct
5	July 01, 2018	Patentselected answer correct	24,000selected answer correct	not attempted
		Cashselected answer correct	not attempted	24,000selected answer correct
6	December 31, 2018	Depreciation Expenseselected answer correct	25,650selected answer incorrect	not attempted
		Accumulated Depreciation—Buildingsselected answer incorrect	not attempted	18,600selected answer incorrect
		Accumulated Depreciation—Equipmentselected answer correct	not attempted	4,650selected answer correct
		Accumulated Amortizationselected answer correct	not attempted	2,400selected answer correct
7	June 30, 2019	Depreciation Expenseselected answer correct	3,100selected answer correct	not attempted
		Accumulated Depreciation—Equipmentselected answer correct	not attempted	3,100selected answer correct
8	June 30, 2019	Cashselected answer correct	29,000selected answer correct	not attempted
		Accumulated Depreciation—Equipmentselected answer correct	7,750selected answer correct	not attempted
		Gain on Disposalselected answer correct	not attempted	2,750selected answer correct
		Equipment selected answer correct	not attempted	34,000selected answer correct
9	December 31, 2019	Depreciation Expenseselected answer correct	19,680selected answer incorrect	not attempted
		Accumulated Depreciation—Buildingsselected answer correct	not attempted	14,880selected answer correct
		Patentselected answer incorrect	not attempted	4,800selected answer incorrect
10	December 31, 2019	Impairment Lossselected answer incorrect	4,800selected answer correct	not attempted
		Patentselected answer incorrect	not attempted	4,800selected answer correct
11	December 31, 2019	Amortization Expenseselected answer incorrect	not attempted	not attempted
		Accumulated Depreciation—Equipment selected answer incorrect	not attempted	not attempted
12	December 31, 2019	Impairment Lossselected answer correct	16,800selected answer correct	not attempted
		Accumulated Depreciation—Equipmentselected answer incorrect	not attempted	16,800selected answer correct

Answer 1

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No. Date Credit Decembel 31 2018 17779791 9977 Answer to wrong entry are General Journal Debit Depreciation Expense 23,250 Amortization Expense 2,400 Accumulated Depreciation - Building Accumulated Depreciation - Equipment Accumulated Amortization - Patent 18,600 4,650 2,400 9. December 31 20189 Depreciation Expense 14,880 Accumulated Depreciation Building 14,880 10. December 31 2019 Amortization Expense 4,800 Accumulated &Amortization - Patent 4,800 11. UU December 31 2019 Accumulated Amostization - Patent 7,200 Patent 7,200 - 16,800 12. December 31 2019 Impairment loss Patent 16,800