Question

Required Informstion [The following infometion applies to the questions displayed below Precialon Construction entered Into the following transactions during arecent year z Parhad alldazar Car $274, 000 Eypying 32,000 aranry and a1ning 5242,000 nats da in csTe yeara.. 3 Raplacad the tl trcka an thalldazar t cat a 32,000, arh atl trks inera the alldasar's parnting ieiancy nt Th n anasry an Jarry 30 at heck Car th mant aad an ant Car th wark cmplated an Jamaary 3 Tabrary 1 Rapairad th lasthar t an the balldazar and rat chck far the all 52,00 t 1 Paid 1D, 500 ca Car th ihts to cmpatar ftar Car twyar ariod arch 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 deprecistion and amortization that Precision Construction should report for the quarter ended March 31. The equlpment is depreclated using the double-decining-belance method with a useful ife of five years and $52000 residual value. 3. Prepare a joumal entry to record the depreclation and amortzation calculsted In requirement 2 Complete this question by entering your answers in the tabs below. R R R2 Prepare the journal entries for each of the above transactions. (It no entry is required for a transaction/event, select Entry Required in the first account Meld.) "No Journal viaw tranas ction list Journal entry worksheet 3 4 Purchased a buldazer tor $274,000 by paying $32,000 cash and signing a $242,000 note due in ive years. Recard the transaction. Nete: Enter debits befarg gredits Date Debit Credit General Journal January 02 Racerd antry dear antry viaw ganaral jeurnal

Answer 1

Requirement 1 Credit Date Jan-02 Debit 2,74,000 $ Journal entries General Journal Equipment Cash Notes Payable (purchased bulldozer in cash and notes payable) 32,000 2,42,000 Jan-03 Equipment $ 32,000 Accounts Payable (Equipment cost improving the operating efficiency capitalized) $ 32,000 Jan-30 Accounts Payable $ 32,000 Cash $ 32,000 (wrote a check for amount owed on Jan 3) Feb-01 $ 2,000 Repair expenses Cash (repair expenses to the equipment paid) $ 2,000 Mar-01 $ 10,800 Computer Software Cash (Paid cash for computer software 2 year period) 10,800

Requirement 2 Depreciation rate = 2/useful life = 2/5 = 40% Depreciation for Jan-Mar Quarter Cost (274000+32000) Depreciation amount (306000*40%*3/12) $ $ 3,06,000 30,600 $ 10,800 Amortization for Jan-Mar Quarter Cost of Software Total Period (in months) Period in use (in months) Amortization expenses (10800*1/24) 24 $ 450 Requirement 3 Credit Journal entries Date General Journal Mar-31 Depreciation expense Accumulated Depreciation Equipment (Depreciation expense for equipment) Debit 30,600 $ $ 30,600 Mar-31 $ 450 Amortization expense Accumulated Amortization-Computer Software (Amortization expense for Computer software) 450