Question

Required information [The following information applies to the questions displayed below) Precision Construction entered into the following transactions during a recent year January 2 Purchased bulldover for $284,000 by paying $37.000 cash and signing a $247,000 note due in five years January 3 Replaced the steelrak on the bulldone at a cost of $37.000, 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 weat on the bulldozer and wrote a check for the full $2,500 cout. March 1 Paid $13,800 cash for the right to use computer software for a two-year period. 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 $57.000 residual value 3. Prepare a journal entry to record the depreciation and amortization calculated in renuirement 2 Complete this question by entering your answers in the tabs Reg 16 Reg 2 Reg 3

Answer 1

journal entries recorded for the requirement 1-b , calculation of amortization and depreciation in requirement  2 are precisely true . so now , requirement 3 , journal entries to record the depreciation and amalgamation

     

Journal Entries For Recording Depreciation And Amortisation in the Books of Acounts

NO	DATE	GENERAL JOURNAL	DEBIT	CREDIT
1	March 31st	Dr   Depreciation Expense a/c	32100
		Cr To Accumulated Depreciation a/c		32100
2	March 31 st	Dr Profit and Loss a/c	32100
		Cr To Depreciation Expense a/c		32100
3	March 31 st	Dr Amortization Expense a/c	575
		Cr To Accumulated Amortization a/c		575
4	March 31 st	Dr Profit and Loss a/c	575
		Cr To Amortization Expense a/c		575