2 For the tangible and Intanglble assets acqulred In the preceding transactions, determine the amount of depreclation and amortization that Casting Crown Construction should report for the quarter that ended March 31. The equipment Is depreclated using the double-declining-balance method with a useful Iife of five years and $40,000 residual value. Equipment Licensing nights 3. Prepare a journal entry to record the depreclation and amortization calculated In regulrement 2 (If no entry Is required for a transaction/event, select "No Journal entry required" In the first account field.) View tranaaction llet Journal entry worksheet Record the entry for depreciation and amortization. Nate: Enter debits betare credits. Date General Journal Debit Credit Depreciation expense Amortization expense Mar 31 Accumulated depreciation (Equip.) Accumulated amortization
2 For the tangible and Intanglble assets acqulred In the preceding transactions, determine the amount of depreclation and amortization that Casting Crown Construction should report for the quarter that ended March 31. The equipment Is depreclated using the double-declining-balance method with a useful Iife of five years and $40,000 residual value. Equipment Licensing nights 3. Prepare a journal entry to record the depreclation and amortization calculated In regulrement 2 (If no entry Is required for a transaction/event, select "No Journal entry required" In the first account field.) View tranaaction llet Journal entry worksheet Record the entry for depreciation and amortization. Nate: Enter debits betare credits. Date General Journal Debit Credit Depreciation expense Amortization expense Mar 31 Accumulated depreciation (Equip.) Accumulated amortization
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter8: Revenue Recognition, Receivables, And Advances From Customers
Section: Chapter Questions
Problem 48P
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Question
Need help with questions 2 and 3.
![2. For the tangible and Intangible assets acquired In the preceding transactlons, determine the amount of depreclation and
amortizatlon that Casting Crown Construction should report for the quarter that ended March 31. The equipment Is depreclated usIng
the double-declining-balance method with a useful life of five years and $40,000 resldual value.
Equipment.
Licensing nights
3. Prepare a Journal entry to record the depreclation and amortization calculated in requlrement 2 (If no entry Is required for a
transaction/event, select "No journal entry required" In the first account field.)
Viow tranooction llet
Journal entry worksheet
Record the entry for deprediation and amortization.
Date
General Journal
Debit
Credit
Mar 31
Depreciation,expense
Amortization expense
Accumulated depreciation (Equip)
Accumu ated amortization](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F046c1bd4-c1c0-4235-911b-a42cad415053%2F16b7f501-f653-4253-9fe4-cd6cc13153ad%2F7mhvak_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. For the tangible and Intangible assets acquired In the preceding transactlons, determine the amount of depreclation and
amortizatlon that Casting Crown Construction should report for the quarter that ended March 31. The equipment Is depreclated usIng
the double-declining-balance method with a useful life of five years and $40,000 resldual value.
Equipment.
Licensing nights
3. Prepare a Journal entry to record the depreclation and amortization calculated in requlrement 2 (If no entry Is required for a
transaction/event, select "No journal entry required" In the first account field.)
Viow tranooction llet
Journal entry worksheet
Record the entry for deprediation and amortization.
Date
General Journal
Debit
Credit
Mar 31
Depreciation,expense
Amortization expense
Accumulated depreciation (Equip)
Accumu ated amortization
![Casting Crown Construction etered Into the following transactions during a recent year
2 Purchased a bulldozer for 5200,000 by paying $20,000 cash and signing a $180,000 note.
3 Replaced Lhe steel tracks on the bulldozer at a cost of 520.600, purchased on account.
Danuary
January
Danuany30 Wrote a cheque for the anount owed on account for the work completed on Jarnuary 3.
February 1 Replaced the seat on the bulldozer and wrote e cheque for the full S6e0 cost.
March
1 Pald $2,480 cash for the rights to use computer software for a two-year perlod.
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
(20,000)
200,000
Jan. 2
Cash
180,000
Equipment
Jan. 3 Equipment
Jan. 30 Cash
20,000
(20,000)
Accounts payable
Accounts payable
20,000
(20,000)
Feb. 1
(600)
(600)
(2,400)
Cash
Repairs and mantenance expense
Mar. 1 Cash
2,400
1-b. Prepare thejournal entrles for each of the transactions. (If no entry is required for a transaction/event, select No Journal entry
required" In the first account field.)
No
Date:
General Journal
Debit
Credit
Jan 02
Equipment
200,000
Cash
20,000
Note payable
180,000
dan 03
Equipment
20,000
Accounts payable
20.000
3
Jan 30
Accounts payable
20,000
Cash
20,000
Feb 01
Repairs and ma ntenance expense;
Cash
Mar 01
Licensing rights
2.400
Cash
2.400
2 For the tang ble and Intang ble assets acquired nthe preceding trancactions, determine the amount of depreclation and
amortization that Casting Crown Construction should report for the quarter that ended March 3t. The equipment Is depreclated using
the double-deaining-balance methodw/th a useful Iife of five years and $40,000 residual vaue.
Equipment
Licensing rights](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F046c1bd4-c1c0-4235-911b-a42cad415053%2F16b7f501-f653-4253-9fe4-cd6cc13153ad%2F9ivfiak_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Casting Crown Construction etered Into the following transactions during a recent year
2 Purchased a bulldozer for 5200,000 by paying $20,000 cash and signing a $180,000 note.
3 Replaced Lhe steel tracks on the bulldozer at a cost of 520.600, purchased on account.
Danuary
January
Danuany30 Wrote a cheque for the anount owed on account for the work completed on Jarnuary 3.
February 1 Replaced the seat on the bulldozer and wrote e cheque for the full S6e0 cost.
March
1 Pald $2,480 cash for the rights to use computer software for a two-year perlod.
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
(20,000)
200,000
Jan. 2
Cash
180,000
Equipment
Jan. 3 Equipment
Jan. 30 Cash
20,000
(20,000)
Accounts payable
Accounts payable
20,000
(20,000)
Feb. 1
(600)
(600)
(2,400)
Cash
Repairs and mantenance expense
Mar. 1 Cash
2,400
1-b. Prepare thejournal entrles for each of the transactions. (If no entry is required for a transaction/event, select No Journal entry
required" In the first account field.)
No
Date:
General Journal
Debit
Credit
Jan 02
Equipment
200,000
Cash
20,000
Note payable
180,000
dan 03
Equipment
20,000
Accounts payable
20.000
3
Jan 30
Accounts payable
20,000
Cash
20,000
Feb 01
Repairs and ma ntenance expense;
Cash
Mar 01
Licensing rights
2.400
Cash
2.400
2 For the tang ble and Intang ble assets acquired nthe preceding trancactions, determine the amount of depreclation and
amortization that Casting Crown Construction should report for the quarter that ended March 3t. The equipment Is depreclated using
the double-deaining-balance methodw/th a useful Iife of five years and $40,000 residual vaue.
Equipment
Licensing rights
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