Palmer Cook Music Productions manages and operates two bands. The company entered into the following transactions during a recent year.
Palmer Cook Music during a recent year January 2 Purchased a tour bus for $80,000 by paying $26,000 cash and igning$54,000 note due in January e After the bus vas used fox nearly one veek, it vas painted vith the Productions manages and operates two bands. The company entered into the follown ons yeare. In its account ing syston, the company records the vehiole distinet fron other types of equipment logos of at a cost of $650, on account. The logos did not incresse the 1ifeapan, operating capacity, or operating efficieney of the bus, but they were thought to be uneful in promoting the bands. January 30 Wrote a check for February 1 Purchased new speakers and amplifier February 8 Paid $550 cash for ninor repairs to the tour bus the amount owed on account for the work completed on January 8. s and wrote a check for the full $21,000 cost. 1 Faid $26,000 cash and signed a $220,000 five-year note to purchase a small office building and land. An appraieal indicated that the butiding and land contributed equally to the total price Hareh 31 Pald $8s,000 cash to aoguire the goodwill and certain tangible assets of xria xyth, Ino. The fair valuen of the tangible assets acquired vere $15,000 for band equipment and 553,000 for recording equipment 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 r convenience, the equipment preciated the same way, using the straight-line method with a useful life of five years and no residual value. The amortization that Palmer Cook Music Productions should report for the quarter ended March 31. Fo and vehicle are de building is depreciated using the double-declining-balance method, with a 10-year useful life and residual value of $26,000 TIP Calculate depreciation from the acquisition date to the end of the quartet 3. Prepare a journal entry to record the depreciation calculated in requirement 2 Complete this question by entering your answers in the tabs below. Req 18 Req 2 Req 3 the tangible and intangible assets acquired in the preceding transactions, determine the amount of depreciation and tization 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 10-year useful life and residu usl value of s2,000. TIP: Calculate depreciation from the acquisition date to the end of the quarter. (Do not round intermediate calculations.) s Show lessA artial Year Vehicle Building CD Palmer Cook Music during a recent year January 2 Purchased a tour bus for $80,000 by paying $26,000 cash and igning$54,000 note due in January e After the bus vas used fox nearly one veek, it vas painted vith the Productions manages and operates two bands. The company entered into the follown ons yeare. In its account ing syston, the company records the vehiole distinet fron other types of equipment logos of at a cost of $650, on account. The logos did not incresse the 1ifeapan, operating capacity, or operating efficieney of the bus, but they were thought to be uneful in promoting the bands. January 30 Wrote a check for February 1 Purchased new speakers and amplifier February 8 Paid $550 cash for ninor repairs to the tour bus the amount owed on account for the work completed on January 8. s and wrote a check for the full $21,000 cost. 1 Faid $26,000 cash and signed a $220,000 five-year note to purchase a small office building and land. An appraieal indicated that the butiding and land contributed equally to the total price Hareh 31 Pald $8s,000 cash to aoguire the goodwill and certain tangible assets of xria xyth, Ino. The fair valuen of the tangible assets acquired vere $15,000 for band equipment and 553,000 for recording equipment 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 r convenience, the equipment preciated the same way, using the straight-line method with a useful life of five years and no residual value. The amortization that Palmer Cook Music Productions should report for the quarter ended March 31. Fo and vehicle are de building is depreciated using the double-declining-balance method, with a 10-year useful life and residual value of $26,000 TIP Calculate depreciation from the acquisition date to the end of the quartet 3. Prepare a journal entry to record the depreciation calculated in requirement 2 Complete this question by entering your answers in the tabs below. Req 18 Req 2 Req 3 the tangible and intangible assets acquired in the preceding transactions, determine the amount of depreciation and tization 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 10-year useful life and residu usl value of s2,000. TIP: Calculate depreciation from the acquisition date to the end of the quarter. (Do not round intermediate calculations.) s Show lessA artial Year Vehicle Building CD
