- Pa9 4 Algo Recording Transactions And Adjustments For Tangible And Intangible Assets Lo 9 1 Lo 9 2 Lo 9 3 Lo 9 4 1 (55.36 KiB) Viewed 9 times
- Pa9 4 Algo Recording Transactions And Adjustments For Tangible And Intangible Assets Lo 9 1 Lo 9 2 Lo 9 3 Lo 9 4 2 (60.27 KiB) Viewed 9 times
- Pa9 4 Algo Recording Transactions And Adjustments For Tangible And Intangible Assets Lo 9 1 Lo 9 2 Lo 9 3 Lo 9 4 3 (47.57 KiB) Viewed 9 times
PA9-4 (Algo) Recording Transactions and Adjustments for Tangible and Intangible Assets [LO 9-1, LO 9- 2, LO 9-3, LO 9-4, LO 9-5, LO 9-6] 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, 2028 Paid $94,000 cash to purchase storage shed components. January 3, 2020 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, 2020 May 13, 2020 July 1, 2020 December 31, 2020 Recorded depreciation and amortization on the pickup truck, storage shed, and patent. Paid $37,000 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 $5,eee. This vehicle is to be recorded in the Truck account. Paid $300 cash for minor repairs to the pickup truck's upholstery. Paid $21,000 cash to purchase patent rights on a new paper bag manufacturing process. The patent is estimated to have a renaining useful life of five years. June 30, 2021 Sold the pickup truck for $31,000 cash. (Record the depreciation on the truck prior to recording its disposal.) December 31, 2021 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). 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.) No 1 Date January 02, 2020 Buildings Cash Haris son ANT Answer is not complete. General Journal 00 Debit 14,000 Credit 94,000
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/ever Entry Required" in the first account field. Do not round intermediate calculations.) View transaction list 3 Record the purchase of storage shed components for $94,000. Record the payment of $4,000 to have the storage shed erected. Jay Record the purchase of a pickup truck for $37,000. Record the repairs of $300 to the pickup truck. Record the purchase of a patent for $21,000 on a new paper bag manufacturing process. Record the depreciation and amortization expense on the pickup truck, storage shed and patent for the year. Note: M journal entry has been entered ***** EX 12 Credit 94,000
Required: Prepare the journal entries required on each of the above dates. (If no entry is required for a transacti Entry Required" in the first account field. Do not round intermediate calculations.) View transaction list 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 $31,000 cash. Record the depreciation on the storage shed for the year. 10 Record the Patent Amortization expense for the full year. Record the reversal of the accumulated amortization of patents. 12 Record any impairment loss incurred on the patent. EX 12 Credit 94,000 >