Answer -
No. | Date | General Journal | Debit | Credit |
1 | Jan. 02, 2018 | Building | $100000 | |
Cash | $100000 | |||
2 | Jan. 03, 2018 | Building | $5000 | |
Cash | $5000 | |||
3 | Apr. 01, 2018 | Equipment | $46000 | |
Cash | $46000 | |||
4 | May 13, 2018 | Repairs and maintenance expense | $400 | |
Cash | $400 | |||
5 | Jul. 01, 2018 | Patent | $15000 | |
Cash | $15000 | |||
6 | Dec. 31, 2018 | Depreciation expense ($21000 + $6000) | $27000 | |
Amortization expense | $1500 | |||
Accumulated depreciation-Building | $21000 | |||
Accumulated depreciation-Equipment | $6000 | |||
Accumulated amortization-Patent | $1500 | |||
7 | Jun. 30, 2019 | Depreciation expense | $4000 | |
Accumulated depreciation-Equipment | $4000 | |||
8 | Jun. 30, 2019 | Cash | $39000 | |
Accumulated depreciation-Equipment ($4000 + $6000) | $10000 | |||
Equipment | $46000 | |||
Gain on disposal | $3000 | |||
9 | Dec. 31, 2019 | Depreciation expense | $16800 | |
Accumulated depreciation-Building | $16800 | |||
10 | Dec. 31, 2019 | Amortization expense ($15000 / 5 years) | $3000 | |
Accumulated amortization-Patent | $3000 | |||
11 | Dec. 31, 2019 | Accumulated amortization-Patent | $3000 | |
Amortization expense | $3000 | |||
12 | Dec. 31, 2019 | Accumulated amortization-Patent ($1500 + $3000) | $4500 | |
Impairment loss ($15000 - $4500) | $10500 | |||
Patent | $15000 |
Calculation:
Dec. 31, 2018:
Depreciation expense-Building:
Using double declining balance method
= (Cost of asset / Useful life) * 2
= [($100000 + $5000) / 10 years] * 2
= $21000
Depreciation expense-Equipment:
Here, Pickup truck purchased on April 1, 2018
So,
Depreciation expense for only 9 months
Using Straight-line method:
= [(Cost of asset - Salvage value) / Useful life] * (9/12)
= [($46000 - $6000) / 5 years] * (9/12)
= $6000
Amortization expense-Patent:
Here, Patent purchased on July 1, 2018
So,
Amortization expense for only 6 months
= ($15000 / 5 years) * (6/12)
= $1500
Jun. 30, 2019:
Depreciation expense-Equipment:
Here, Pickup truck sold on June 30, 2019
So,
Depreciation expense for only 6 months
Using Straight-line method:
= [(Cost of asset - Salvage value) / Useful life] * (6/12)
= [($46000 - $6000) / 5 years] * (6/12)
= $4000
Dec. 31, 2019:
Depreciation expense-Building:
Cost of asset = ($105000 - $21000) = $84000
Using double declining balance method
= (Cost of asset / Useful life) * 2
= [$84000 / 10 years] * 2
= $16800
Amortization expense-Patent:
= ($15000 / 5 years)
= $3000
The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International...
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 2 Paid $100,000 cash to purchase storage shed components. 3 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. January January 1 Paid $46,000...
The following transactions and adjusting entries were completed by Gravure Graphics International, a paper-packaging company. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents. April January 2, 2016 Paid $96,600 cash to purchase storage shed components. January 3, 2016 Paid $5,400 cash to have the storage shed erected; storage shed has an estimated life of ten years and a residual value of $11,000. 1, 2016 Paid $42,400 cash to purchase...
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 $95,000 cash to purchase storage shed components. January 3 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 $10,000. April 1 Paid...
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...
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 $101,000 cash to purchase storage shed components. January 3 Paid $6,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $9,000. April 1 Paid...
Any help appreciated, Thank you! 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 $87,eee cash to purchase storage shed components. January 3 Paid $3,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value...
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. (I JUST NEED HELP WITH #10,11,12 PLEASE...Been stuck for over a hour!!) 2018 January 2 Paid $90,000 cash to purchase storage shed components. January 3 Paid $5,000 cash to have the storage shed erected. The storage shed has an estimated life...
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...
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 $92,000 cash to purchase storage shed components. January 3 Paid $4,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $7,000. April 1...
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 $93,000 cash to purchase storage shed components. January 3 Paid $4,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $7.000 April 1 Paid...