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I have been stumped for a while on this. Please help! Required information [The following information applies to the questions displayed below] Palmer Cook Music
I have been stumped for a while on this. Please help!
Required information [The following information applies to the questions displayed below] Palmer Cook Music Productions manages and operates two bands. The company entered into the following transactions during a recent year. January 2 Purchased a tour bus for $104,0e0 by paying $38, eee cash and signing a $66, ,eee note due in two years. In its accounting systen, the coepany records the vehicle distinct from other types of January B After the bus was used for nearly one week, It was painted with the logos of the two bands at a cost of 5550, on account. The logos did not increase the lifespan, operating capacity, or operating efficiency of the bus, but they were thought to be useful in promoting the bands. January 30 Wrote a check for the amount owed on account for the work completed on January 8. Febrrary 1 Purchased nes speakers and anplifiers and wrote a check for the full 539,000 cost. February 8 Paid s45e cash for minor repairs to the tour bus. March 1 Paid $38, eee cash and signed a $280, eae five-year note to purchase a small office building and March 31 Pand. An appraisat indicated that the building and land contributed equally to the total price. March 31 Paid 597 , eee cash to acquire the goodwill and certain tangible assets of Kris Myth, tncorporated. The fair values of the tangible assets acquired were $23,000 for band equipnent and $61,e00 for recording equipent. 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 Paimer Cook Music Productions should report for the quarter ended March 31 . For convenience, the equipment and vehicle are deprecioted the same way, using the straight-line method with a useful life of five years and no residual value. The buliding is depreciated using the double-declining-balance method, with a 10-year useful life and residual value or $38,000. Tip: Calculate depreciation from the acquisition date to the end of the quarter. 3. Prepare a journal entry to record the depreciation calculated in requirement 2 . Complete this question by entering your answers in the tabs below. For the tangible and intangible assets acquired in the preceding transactions, determine the amount of depreciation and amortization that Palmer Cook Music Productions should report for the quarter ended March 31. For convenience, the equlpment and vehicle are depreciated the same way, using the straight-line method with a useful life of five years and no residual value. The building is depreciated using the double-declining-balance method, with a 10-year useful life and residual value of $38,000. TIP: Calculate depreciation from the acquisition date to the end of the quarter. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Prepare a journal entry to record the depreciation calculated in requirement 2. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Step by Step Solution
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