1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Yakvenalex [24]
3 years ago
7

The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics Internation

al 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.
January 2 , 2015
Paid $86,000 cash to purchase storage shed components.
January 3 , 2015
Paid $2,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $5,000.
April 1 , 2015
Paid $40,000 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 $3,000.
May 13 , 2015 Paid $500 cash for repairs to the pickup truck.
July 1 , 2015
Paid $29,000 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 , 2015
Recorded depreciation and amortization on the pickup truck, storage shed, and patent.
June 30 , 2016
Sold the pickup truck for $34,000 cash. (Record the depreciation on the truck prior to recording its disposal.)
December 31 , 2016
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).
Record the journal entries for the following:
1. Record the purchase of storage shed components for $86,000.
2. Record the payment of $2,000 to have the storage shed erected
3. Record the purchase of a pickup truck for $40,000.
4.. Record the repairs of $500 to the pickup truck.
5.. Record the purchase of a patent for $29,000 on a new paper bag manufacturing process
6. Record the depreciation and amortization expense on the pickup truck, storage shed and patent for the year
7. Record the depreciation for the truck up to the date of sale.
8. Record the sale of the pickup truck for $34,000 cash.
9. Record the depreciation on the storage shed for the year.
10. Record any impairment loss incurred on the patent.
Business
1 answer:
maria [59]3 years ago
8 0

Answer:

Note: See the attached excel file for the journal entries for recording events 1 to 10.

Explanation:

Also note that since the double-declining-balance depreciation is used for buildings, the depreciation rate for the building is therefore obtained as follows:

Note that double-declining-balance is a depreciation method that depreciates an asset twice the rate of the straight line depreciation method. Therefore, the double-declining-balance depreciation rate used in the excel file is calculated as follows:

Straight line depreciation rate = 1 / Number of estimated life = 1 / 10 = 0.10, or 10%

Double-declining depreciation rate = Straight line depreciation rate * 2 = 10% * 2 = 20%

Download xlsx
You might be interested in
A project sponsor is responsible for ensuring that all of the project management and technical development processes are in plac
MariettaO [177]

Answer: False

Explanation: The operations defined in the given problem are performed by the project manager and not the project sponsor.

The project manager is typically considered as the owner of the project. Its main duties relates to providing necessary resources to complete the project. On the other hand the project manager is responsible for completing the project in the way it was planned to be.

Thus, the given statement is false.

3 0
3 years ago
When small changes in price lead to infinite changes in quantity demanded, demand is perfectly
aleksley [76]

Answer:

correct answer is Option D

Explanation:

Option D - elastic, and the demand curve will be horizontal.

The quantity would be changed infinitely with a samll change in the the price. It means that demand is perfectly elastic and the curve is horizontal as the small change up decreases the quantity to zero and small change down increases the quantity infinity. Thus, option D is the correct ams of this questionwer

6 0
3 years ago
in may 2021, sandra's office was burglarized, and she determined that approximately $21,000 of equipment was taken. in september
victus00 [196]

The replacement period ends on December 31,2023 based on the information given about the insurance.

<h3>How to explain the information?</h3>

It should be noted that the replacement period is the period beginning and ending the reimbursement of an equipment.

It should be noted that the replacement will begin on the date when the equipment was stolen. In this case, it will then end two years after the close of the first tax year where the part of gain is realized.

Therefore, the replacement period ends on December 31,2023

Learn more about insurance on:

brainly.com/question/25855858

#SPJ1

Options

A) September 30, 2023

B) December 31, 2023

C) December 31, 2022

D) December 31, 2021

5 0
1 year ago
A company issued 6,000 shares of stock at $10 each, with a par value of $2.
tensa zangetsu [6.8K]
The answer is c $30,000
5 0
3 years ago
On April 1, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What amount
inn [45]

Answer:

$337.50

Explanation:

the premium on a three year policy = $1,350

premium per year = $1,350 / 3 = $450

premium per month = $450 / 12 = $37.50

Since the premium covered April to December, 9 months of insurance expense are accrued.

insurance expense for 9 months = $37.50 x 9 = $337.50

The journal entries should be:

April 1, purchase a 3 year insurance policy:

Dr Prepaid insurance 1,350

    Cr Cash 1,350

December 31, accrued insurance expense:

Dr Insurance expense 337.50

    Cr Prepaid insurance 337.50

8 0
2 years ago
Other questions:
  • Lobbying is a. an attempt by an individual or group to influence the passage of legislation by exerting indirect pressure, throu
    10·2 answers
  • ) Offensive strategic moves involve all of the following except 38) A) pursuing continuous product innovation to draw sales and
    7·1 answer
  • A 6% pay increase to your current $62,900 annual salary. "thanks, i look forward to the additional __________ per month."
    9·1 answer
  • According to the pie chart, which function consumed the largest portion of government expenditures in 2003?
    13·2 answers
  • Nick and Teresa are debating the pricing strategy of several airlines. Nick argues, "When airlines restrict discounted tickets t
    8·1 answer
  • In year 1, Rim Corporation purchases 1,000 shares of treasury stock for $10 per share. In year 2, Rim reissues 100 shares of the
    6·1 answer
  • Government involvement in a modern economy is generally defended because:.
    7·1 answer
  • The effects of legislation on human resource professionals is important because: Multiple choice question. it seldom changes and
    11·1 answer
  • One of the disadvantages of investing in real estate is A) investors need expert help. B) pyramiding. C) equity buildup. D) leve
    13·1 answer
  • The following merchandise transactions occurred during December for two different companies: Rippen
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!