Question

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 $36,000 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 $5,000.
May		13		Paid $400 cash for minor repairs to the pickup truck's upholstery.
July		1		Paid $22,000 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.
December		31		Recorded depreciation and amortization on the pickup truck, storage shed, and patent.
2019
June		30		Sold the pickup truck for $31,000 cash. (Record the depreciation on the truck prior to recording its disposal.)
December		31		Recorded depreciation on the storage shed. Also 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.)

Journal entries
Event	Date	General journal	Debit	Credit
1	Jan 2, 2018	Storage Shed (Building)
		Cash
2	Jan 3, 2018	Storage Shed (Building)
		Cash
3	Apr 1, 2018	Truck (Equipment)
		Cash
4	May 13, 2018	Repair expense
		Cash
5	Jul 1, 2018	Patent
		Cash
6	Dec 31, 2018	Depreciation expense
		Amortization expense
		Accumulated depreciation - Storage Shed (Building)
		Accumulated depreciation - Truck (Equipment)
		Accumulated Amortization - Patent
		(To record adjustment entry for Depreciation and amortization expense)
7	Jun 30, 2019	Depreciation expense - Truck (Equipment)
		Accumulated depreciation - Truck (Equipment)
8	Jun 30, 2019	Cash
		Accumulated depreciation - Truck (Equipment)
		Gain on sale of Truck
		Truck (Equipment)
9	Dec 31, 2019	Depreciation expense
		Accumulated depreciation - Storage Shed (Building)
		(To record depreciation for Storage Shed.)
10	Dec 31, 2019	Amortization expense
		Accumulated Amortization - Patent
		(To record Amortization for Patent.)
11	Dec 31, 2019	Accumulated Amortization - Patent
		Patent
		(To Record the reversal of the accumulated amortization of patents.)
12	Dec 31, 2019	Impairment expense - patent
		Patent
		(To Record any impairment loss incurred on the patent.)

Comment

Answer 1