Reference no: EM132580592

The following transactions and adjusting entries were completed by Gravure Graphics International, a paper-packaging company. 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, 2016 Paid $98,200 cash to purchase storage shed components. January 3, 2016 Paid $5,800 cash to have the storage shed erected; storage shed has an estimated life of ten years and a residual value of $12,000.

• April 1, 2016 Paid $46,800 cash to purchase a pickup truck for use in the business; truck has an estimated useful life of five years and a residual value of $8,800.

• May 13, 2016 Paid $330 cash for repairs to the pickup truck. July 1, 2016 Paid $20,800 cash to purchase patent rights on a new paper bag manufacturing process; patent is estimated to have a remaining useful life of five years.

• December 31, 2016 Recorded depreciation and amortization on the pickup truck, storage shed, and patent.

• June 30, 2017 Sold the pickup truck for $40,600 cash. (Record the depreciation on the truck prior to recording its disposal.)

• December 31, 2017 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.)

Required:

Question 1: 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.)