Question

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 $258,000 by paying $24,000 cash and signing a $234,000 note due in five years. January 3 Replaced the steel tracks on the bulldozer at a cost of $24,000, 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 $1,200 cost. March 1 Paid $6,000 cash for the rights to use computer software for a two-year period. PAS-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 $44.000 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 Purchased a bulldozer for $258,000 by paying $24,000 cash and signing a $234,000 note due in five years. Record the transaction. Note: Enter debits before credits. General Journal January 02 Date care credits. Debit Credit

Answer 1

1b
January 02	Equipment	258000
	Cash		24000
	Notes Payable (long-term)		234000
January 03	Equipment	24000
	Accounts Payable		24000
January 30	Accounts Payable	24000
	Cash		24000
February 01	Repairs and Maintenance Expense	1200
	Cash		1200
March 01	Licensing Rights	6000
	Cash		6000
2
		Partial Year
	Depreciation-Equipment	28200		=(258000+24000)*40%*3/12
	Amortization-Licensing Rights	250		=6000/2*1/12
3	Depreciation Expense	28200
	Amortization Expense	250
	Accumulated Depreciation		28200
	Accumulated Amortization/Licensing Rights		250