ezto.mheducation.com/hm.tpx Bookmarks ESCI 111 Qulz 10 F ect ows what is correct
ID: 2565162 • Letter: E
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ezto.mheducation.com/hm.tpx Bookmarks ESCI 111 Qulz 10 F ect ows what is correct and incorrect for the work you have completed so far he work you have done so far is correct, you may not have completed everything. 0.60 points PA9-4 Recording Transactions and Adjustments for Tangible and Intangible Assets [LO 9-1, 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-line depreciation for trucks and other vehicles, doublgbalance depreciation for buildings, and straight -line amortization for patents. 2, 2015 1,2015 1, 2015 Paid $19,000 cash to purchas January January 3, 2015 Paid $96,000 cash to purchase storage shed components 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 Paid $42,000 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 $7,000. April May 13, 2015 Paid $600 cash for repairs to the pickup truck. se patent rights on a new paper bag manufacturing s patent is estimated to have a remaining u process. The Recorded depreciation and amortization on the pickup truck, storage shed, and patent Sold the pickup truck for $36,000 cash. (Record the depreciation on the to recording its disposal.) Recorded depreciation on the storage shed. Determined that the patent was mpaired and zero) useful life of five years. December 31, 2015 June 30, 2016 December 31,2016 truck prior wrote off its remaining book value (i.e., wrote down the book value to Required: Prepare the journal entries required on each of the above dates.(f no entry is required for a transactionlevent, select "No Journal Entry Required in the first account field intermediate calculations.) Answer is not complete. FI F2 F4 FS F7Explanation / Answer
Depreciaiton on the truck=(Cost-salvage value)/years
=(42000-7000)/5=7000
For 9 months the depreciation is =(9/12)*7000=5250
For storage shed the depreciation=(102000*(2/10)
=20400
the Depreciaiton expense(db) 25650
Acc depreciaiton-shed(cr) 20400
Acc depreciaiton trucks(cr) 5250
Dec 31st:
Depreciaiton=(102000-20400)*(2/10)=16320
Depreciaition expense(db) 16320
Acc deprecaition shed(cr) 16320
impairement loss(db) 17100
patent(cr) 17100
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