January $2$ Purchased a tour bus for $$90,000$ by paying $$31,000$ cash and signing a $$59,000$ note due in two

years. In its accounting system, the company records the vehicle distinct from other types of

equipment.

January $8$ After the bus was used for nearly one week, it was painted with the logos of the two bands at a

cost of $$900,$ 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 $8.$

February $1$ Purchased new speakers and amplifiers and wrote a check for the full $$28,500$ cost$.$

February $8$ Paid $$800$ cash for minor repairs to the tour bus.

March $1$ Paid $$31,000$ cash and signed a $$245,000$ five$-$year note to purchase a small office building and

land. An appraisal indicated that the building and land contributed equally to the total price.

March $31$ Paid $$90,000$ cash to acquire the goodwill and certain tangible assets of Kris' Myth$,$ Incorporated.

The fair values of the tangible assets acquired were $$20,000$ for band equipment and $$60,000$ for

recording equipment.

CP$9-3($Algo$)$ Part $1-$b to $3$

$1-$b$.$ Prepare the journal entries for each of the above transactions.

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 equipment

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 $8-$year useful life and residual value of $$31,000.$ TIP:

Calculate depreciation from the acquisition date to the end of the quarter.

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

equipment 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 $8-$year useful life and residual

value of $$31,000.$ TIP: Calculate depreciation from the acquisition date to the end of the quarter. $($Do not round intermediate