Answer Happy

Casting Crown Construction entered into the following transactions during a recent year: January January January February March 2 Purchased a bulldozer for $200,000 by paying $20,000 cash and signing a $180,000 note. 3 Replaced the steel tracks on the bulldozer at a cost of $20,000, purchased on account. 30 wrote a cheque for the amount owed on account for the work completed on January 3. 1 Replaced the seat on the bulldozer and wrote a cheque for the full $600 cost. 1 Paid $2,400 cash for the rights to use computer software for a two-year period. Required: 1-a. Analyze the accounting equation effects. (Enter any decreases to accounts with a minus sign.) Date Assets Liabilites Shareholder's Equity Note payable 180,000 Jan. 2 Equipment Cash Jan. 3 Equipment Jan. 30 Accounts payable Feb. 1 Accounts receivable Accounts payable 200,000 (20,000) 20,000 (20,000) (600) (2,400) 20,000 (20,000) Mar. 1

1-b. Prepare the journal entries for each of the transactions. (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 < 1 2 3 4 5 Purchased a bulldozer for $200,000 by paying $20,000 cash and signing a $180,000 note. Note: Enter debits before credits. Date General Journal Debit Credit Jan 02 Accounts payable Perordent Clear entru Viewgeneraliournal

2. For the tangible and intangible assets acquired in the preceding transactions, determine the amount of depreciation and amortization that Casting Crown Construction should report for the quarter that ended March 31. The equipment is depreciated using the double declining balance method with a useful life of five years and $40,000 residual value. Equipment Licensing nghts

3. Prepare a journal entry to record the depreciation and amortization 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 < 1 > Record the entry for depreciation and amortization, Note: Enter debits before credits Date General Journal Credit Mar 31