The following transactions and adjusting entries were completed by a paper-packa

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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-ine depreciation for for patents. January 2,2015 Paid $102.000 cash to purchase storage shed components trucks and other vehicles depreciation for January3,2015 Paid $4,000 cash to have the storage shed erected. The storage shed has an April1.2015 Paid $48.000 cash to purchase a pickup truck for use in the business. The truck has May 13, 2015 Paid $800 cash for repairs to the pickup truck estimated life of 10 years and a residual value of 37.000 an estimated useful lie of five years and a residual value of $5,000 Paid $13,000 cash to purchase patent rights on a new paper bag manufacturing 1, 2015 July December 31, 2015 Recorded depreciation and amortization on the pickup truck, storage shed, and June 30, 2016 Sold the pickup truck for $41,000 cash. (Record the depreciation on the truck prior December 31, 2010 Recorded depreciation on the storage shed. Determined that the patent was process. The patent is estimated to have a remaining useful life of five years patent to recording its disposal.) impaired and wrote off its remaining book value (ie., 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 transactionlevent, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Journal entry worksheet Racord the purchase of storage shed components for $102.0o0. Nope: Enter dabits before credits. Date General Journal Debit Credit January 02, 2015 O Type here to search

Explanation / Answer

Gravure Graphics General Journal Date Accounts & Explaination Amount (Dr) Amount (Cr) 2-Jan Building Shed $     1,02,000.00      To Cash $                                      1,02,000.00 (Being amount of Purchase of Storage Shed) 3-Jan Building Shed $           4,000.00     To Cash $                                            4,000.00 (Being amount paid for storage Shed erected) 1-Apr Pickup Truck $         48,000.00        To Cash $                                          48,000.00 (Being amount of Purchase of Pickup Van) 13-May Repair & Maintenance-Pickup Truck $               600.00        To Cash $                                                600.00 (Being amount paid for repairs of Pickup Truck) 1-Jul Patent   $         13,000.00       To Cash $                                          13,000.00 (Being amount of Patent Purchased) 31-Dec Depreciation $         19,800.00      To Accumulated Depreciation-Building Shed $                                          19,800.00 (Being amount of Depreciation($102000+$4000-$7000)*.20 31-Dec Depreciation $           6,450.00       To Accumulated Depreciation-Truck(($48000-$5000)/5)*9/12 $                                            6,450.00 (Being amount of Depreciation) 31-Dec Amortization Expense($13000/5)*6/12 $           1,300.00        To Patent $                                            1,300.00 (Being amount of Amortization of Patent) 30-Jun-16 Depreciation $           4,300.00     To Accumulated Depreciation-Truck $                                            4,300.00 (Being amount of Depreciation)=($48000-$5000)/5=$8600*1/2 30-Jun Cash $         41,000.00     Accumulated depreciation $         10,750.00           To Truck $                                          48,000.00             To Profit on sale of Truck $                                            3,750.00 (Being amount of Sale of Truck) 31-Dec Depreciation $         21,200.00       To Accumulated Depreciation-Building Shed($102000+$4000)*.20 $                                          21,200.00 (Being amount of depreciation on Building Shed) 31-Dec Imparment Loss($13000-$1300) $         11,700.00      To Patent $                                          11,700.00 (Being amount of Impairment loss of the Patent) Double Declining depreciation on Shed Straight Line Rate=(1/10) $                    0.10 Double Declining depreciation Rate $                    0.20

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