Required information PA9-3 (Algo) 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 $276,000 by paying $33,000 cash and signing a $243,000 note due in five years. January 3 Replaced the steel tracks on the bulldozer at a cost of $33,000, 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 $2,100 cost. March 1 Paid $11,400 cash for the rights to use computer software for a two-year period. PA9-3 (Algo) 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, if any, 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 $53,000 residual value. The licensing right is amortized using the straight-line method with a useful life of two years and no residual value. 3. Prepare a journal entry to record he depreciation and amortization, if any, calculated in requirement 2.
Required information PA9-3 (Algo) 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 $276,000 by paying $33,000 cash and signing a $243,000 note due in five years. January 3 Replaced the steel tracks on the bulldozer at a cost of $33,000, 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 $2,100 cost. March 1 Paid $11,400 cash for the rights to use computer software for a two-year period. PA9-3 (Algo) 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, if any, 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 $53,000 residual value. The licensing right is amortized using the straight-line method with a useful life of two years and no residual value. 3. Prepare a journal entry to record he depreciation and amortization, if any, calculated in requirement 2.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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All 3 parts
![Required information
PA9-3 (Algo) 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 $276,000 by paying $33,000 cash and signing a $243,000 note due in five
years.
January 3
Replaced the steel tracks on the bulldozer at a cost of $33,000, 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 $2,100 cost.
March 1 Paid $11,400 cash for the rights to use computer software for a two-year period.
PA9-3 (Algo) 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, if any, 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 $53,000 residual value. The licensing right is
amortized using the straight-line method with a useful life of two years and no residual value.
3. Prepare a journal entry to record he depreciation and amortization, if any, calculated in requirement 2.
Complete this question by entering your answers in the tabs below.
Req 1B
Req 2
Req 3
Prepare the journal entries for each of the above transactions. (If no entry is required for a transaction/event. select "No Journal Entry](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F11a64bba-74c0-4fd7-b16b-3d8fff0a6ac2%2F595dcb9a-f6f3-41f5-83ce-38c4cffea526%2F0grtl6s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
PA9-3 (Algo) 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 $276,000 by paying $33,000 cash and signing a $243,000 note due in five
years.
January 3
Replaced the steel tracks on the bulldozer at a cost of $33,000, 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 $2,100 cost.
March 1 Paid $11,400 cash for the rights to use computer software for a two-year period.
PA9-3 (Algo) 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, if any, 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 $53,000 residual value. The licensing right is
amortized using the straight-line method with a useful life of two years and no residual value.
3. Prepare a journal entry to record he depreciation and amortization, if any, calculated in requirement 2.
Complete this question by entering your answers in the tabs below.
Req 1B
Req 2
Req 3
Prepare the journal entries for each of the above transactions. (If no entry is required for a transaction/event. select "No Journal Entry
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