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  • Precision Construction Entered Into The Following Transactions During A Recent

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    Precision Construction made several purchases and payments in January and February. They purchased a bulldozer for $250,000 by paying $20,000 cash and financing $230,000, replaced the bulldozer's tracks for $20,000, paid $20,000 for the track repair work, replaced the bulldozer seat for $800 and paid for it, and paid $3,600 for two years of software licenses.

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    Precision Construction Entered Into the Following Transactions During a Recent

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    Precision Construction made several purchases and payments in January and February. They purchased a bulldozer for $250,000 by paying $20,000 cash and financing $230,000, replaced the bulldozer's tracks for $20,000, paid $20,000 for the track repair work, replaced the bulldozer seat for $800 and paid for it, and paid $3,600 for two years of software licenses.

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    © All Rights Reserved
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    13 views1 page

    Precision Construction Entered Into The Following Transactions During A Recent

    Uploaded by

    Let's Talk With Hassan
    Precision Construction made several purchases and payments in January and February. They purchased a bulldozer for $250,000 by paying $20,000 cash and financing $230,000, replaced the bulldozer's tracks for $20,000, paid $20,000 for the track repair work, replaced the bulldozer seat for $800 and paid for it, and paid $3,600 for two years of software licenses.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Precision Construction entered into the following

    transactions during a recent #2798


    Precision Construction entered into the following transactions during a recent year. January 2
    Purchased a bulldozer for $250,000 by paying $20,000 cash and signing a $230,000 note due
    in five years.January 3 Replaced the steel tracks on the bulldozer at a cost of $20,000,
    purchased on account.January 30 Wrote a check for the amount owed on account for the work
    completed onJanuary 3.February 1 Replaced the seat on the bulldozer and wrote a check for
    the full $800 cost.March 1 Paid $3,600 cash for the rights to use computer software for a two-
    year period.Required:1. Analyze the accounting equation effects and record journal entries for
    each of the 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 $40,000 residual value.3. Prepare
    a journal entry to record the depreciation calculated in requirement 2.4. What advice would you
    offer the company in anticipation of switching to IFRS in the future?View Solution:
    Precision Construction entered into the following transactions during a recent

    ANSWER
    http://paperinstant.com/downloads/precision-construction-entered-into-the-following-
    transactions-during-a-recent/

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