http://ezto.mheducation.co>x Chapter 9 HW Check Your Work Unde ezto.mheducation.
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http://ezto.mheducation.co>x Chapter 9 HW Check Your Work Unde ezto.mheducation.com/hm.tpx Bookmarks (C ESCI 111 Quiz 10 F PA9-4 Recording Transactions and Adjustments for Tangible and Intangible Asse 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, double-declining-balance depreciation for buildings, and straight-line amortization for patents. 2, 2015 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 January January April 1, 2015 May13, 2015 Paid $600 cash for repairs to the pickup truck 1,2015 Paid $19,000 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 December 31, 2015 June 30, 2016 Sold the pickup truck for $36,000 cash. (Record the depreciation on the truck prion recording its disposal.) Recorded depreciation on the storage shed. Determined that the patent was impaired and wrote off its remaining book value (i.e., wrote down the book value to zero). December 31, 2016 ero and 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.) View transaction list Journal entry worksheet Record the purchase of storage shed components for $96,000.Explanation / Answer
Jan 2 2015 Building / Shed 96,000 Cash 96,000 Jan 3 2015 Building / Shed 6,000 Cash 6,000 Apr 1 2015 Vehicle / Truck 42,000 Cash 42,000 May 13 2015 Repair and Maintenance Expenses 600 Cash 600 July 1 2015 Patent 19,000 Cash 19,000 Dec 31 2015 Depreciation 5,250 Accumulated Depreciation-Truck 5,250 (5,250 = (42,000-7,000)/5 = 7,000 per year x 9/12) Dec 31 2015 Depreciation 8,700 Accumulated Depreciation-Shed 8,700 (9,300 = (102,000 – 9000)/10 ) Dec 31 2015 Amortisation 1,900 Patent 1,900 (1,900 = (19,000/5 x 6/12) June 30, 2016 Depreciation 3,500 Accumulated Depreciation-Truck 3,500 (3,500 = 7,000 per year (see Dec 2015 AJE) x 6/12) Cash 36,000 Accumulated Depreciation-Truck 8,750 Truck 42,000 Gain on Disposal 2,750 Dec 31 2016 Depreciation 9,300 Accumulated Depreciation-Shed 9,300 (9,300 = (102,000 – 9000)/10 ) Dec 31 2016 Impairment Loss 17,100 Patent 17,100
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