Don't give answer in image format The following transactions and adjusting entries were completed by a paper-packaging company called Gravure GraphicsInternational. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation forbuildings, 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 yearsand a residual value of $5,000.April 1, 2020May 13, 2020July 1, 2020December 31, 2020June 30, 2021December 31, 2021View transaction listPaid $50,000 cash to purchase a pickup truck for use in the business. The truck has an estimateduseful life of five years and a residual value of $3,000. This vehicle is to be recorded in the Truckaccount.Required:Prepare the journal entries required on each of the above dates. (If no entry is required for a transaction/event, select "No JournalEntry Required" in the first account field. Do not round intermediate calculations.)1Paid $800 cash for minor repairs to the pickup truck's upholstery.Paid $11,000 cash to purchase patent rights on a new paper bag manufacturing process. The patent isestimated 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 $43,000 cash. (Record the depreciation on the truck prior to recording itsdisposal.)Recorded depreciation on the storage shed. Recorded the patent amortization. After recording thepatent amortization, determined that the patent was impaired and wrote off its remaining book value(i.e., wrote down the book value to zero).Journal entry worksheet2 3 4DateJanuary 02, 2020Note: Enter debits before credits.56Record the purchase of storage shed components for $104,000.7General Journal8 ..... 12DebitCredit

The journal keeps the record for day to day transactions on regular basis. The depreciation expense…

The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, 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 May 13, 2020 July 1, 2020 December 31, 2020 June 30, 2021 December 31, 2021 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. Paid $800 cash for minor repairs to the pickup truck's upholstery. 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. Recorded depreciation and amortization on the pickup truck, storage shed, and patent. Sold the pickup truck for $43,000 cash. (Record the depreciation on the truck prior to recording its disposal.) 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).

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 8P: At the beginning of 2020, Holden Companys controller asked you to prepare correcting entries for the...