Required Information The Following Information Applies To The Questions Displayed Below Precision Construction Entere 1 (39.31 KiB) Viewed 28 times
Required Information The Following Information Applies To The Questions Displayed Below Precision Construction Entere 2 (32.18 KiB) Viewed 28 times
! Required information The following information applies to the questions displayed below) Precision Construction entered into the following transactions during a recent year. January 2 Purchased a bulldozer for $286,000 by paying $38,000 cash and signing a $248,000 note due in five years. January 3 Replaced the steel tracks on the bulldozer at a cost of $38,800, purchased on account. The new steel tracks increase the bulldozer's operating efficiency. January 30 Wrote a check for the amount owed on account for the work complemed on January 3. February 1 Repaired the leather seat on the bulldozer and wrote a check for the full $2,600 cost. March 1 Paid $14,400 cash for the rights to use computer software for a two-year period. 1-b. Prepare the journal entries for each of the above transactions, 2. For the tangible and intangible assets acquired in the preceding transactions, determine the amount of depreciation and amortization, if any, that Precision Construction should report for the quarter ended March 31. The equipment is depreciated using the double-declining balance method with a useful life of five years and $58,000 residual value. The licensing right is amortized using the straight-line method with a useful life of two years and no residual value. 3. Prepare a journal entry to record he depreciation and amortization, if any, calculated in requirement 2
Prepare a journal entry to record he depreciation and amortization, if any, calculated in requirement 2. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < Record the depreciation and amortization expense on the bulldozer and computer software for the quarter ended March 31. Credit Note: Enter debits before credits Date General Journal March 31 Depreciation Expense Amortization Expense Accumulated Depreciation-Equipment Licensing Rights Debit 32.400 600 32,400 600
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