Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Casting Crown Construction entered into the following transactions during a recent year: January 2 Furchased a bulldozer for $200,000 by paying $20,000 cash and signing

image text in transcribed

Casting Crown Construction entered into the following transactions during a recent year: January 2 Furchased a bulldozer for $200,000 by paying $20,000 cash and signing a $180,000 note. January 3 Replaced the steel tracks on the bulldozer at a cost of $20,000, purchased on account. January 30 Wrote a cheque for the amount owed on account for the work completed on January 3. Mareh 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.) 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.) 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. 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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

8th Edition

1118484320, 978-1118484326

More Books

Students also viewed these Accounting questions

Question

Describe how to distinguish needs from wants.

Answered: 1 week ago

Question

3. How old are they? (children, teens, adults, seniors)

Answered: 1 week ago

Question

4. Where do they live? (city or town, state, country)

Answered: 1 week ago