Question 3
Required Information PA9-3 Analyzing and Recording Long-Lived Asset Transactions with Partial-Year Depreciation (LO 9-2, LO 9-3, LO 9-6) [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,eee by paying $38,000 cash and signing a $240,000 note due in five years. January 3 Replaced the steel tracks on the bulldozer at a cost of $30,000, 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 completed 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. PA9-3 Part 1-b to 3 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 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. 3. Prepare a journal entry to record the depreciation and amortization calculated in requirement 2 Complete this question by entering your answers in the tabs below. Reg 18 Reg 2 Reg 3 Prepare the journal entries for each of the above 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 5 Purchased a bulldozer for $286,000 by paying $38,000 cash and signing a $248,000 note due in five years. Record the transaction Notel Enter debits before credit Date General Journal Debit Credit January 02 Record entry Clear entry View general journal Regn Reg 2 > Req 1B Reg 2 Reg 3 Prepare the journal entries for each of the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list X 1 Purchased a bulldozer for $286,000 by paying $38,000 cash and signing a $248,000 note due in five years. Record the transaction. ng a 2 Replaced the steel tracks on the bulldozer at a cost of $38,000, purchased on account. Record the transaction. 3 Wrote a check for the amount owed on account for the work completed on January 3. Record the transaction. Credit 4 Repaired the leather seat on the bulldozer and wrote a check for the full $2,600 cost. Record the transaction. 5 Paid $14,400 cash for the rights to use computer software for a two-year period. Record the transaction. Note: journal entry has been entered Record entry Clear entry View general journal Rea 10 Reg 2 > Complete this question by entering your answers in the tabs below. Reg 10 Reg 2 Reg 3 For the tangible and intangible assets acquired in the preceding transactions, determine the amount of depreciation and amortization 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. (Do not round intermediate calculations.) Partial Year Depreciation Equipment Amortization Licensing Rights View transaction list Journal entry worksheet Record the depreciation and amortization expense on the bulldozer and computer software for the quarter ended March 31. Note: Enter debits before credits. Date General Journal Debit Credit March 31 Record entry Clear entry View general journal
