Palmer Cook Music Productions manages and operates two bands. The company entered into the following transactions during a recent year (only need Req 2 and Req 3)
Palmer Cook Music Productions manages and operates two bands. The company entered into the following transactions during a recent year Janoary 2 Purchased a tour bos tor $80,000 by paying $26,000 cash and signing a s54,000 note due in tvo years. In Ite accounting syaten, the company recorda the vehtele distinot fros other types of equipment. Janosry After the bun vas used for mearly one week, it vas painted with the logos of the two bands at a oost of $650, on account. The logos did not increase the lifespan, operating capacity. or operating officlency 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 . February 1 Purehased new speakers and amplifiers and wrote a check for the full $21,000 cost. rebruary Paid $550 caah for ninor repairs to the tour bus. Karch 1 Paid $26,000 cash and aigned $220, 000 ive-year note to purchase a ama1l office building and land. An appraisal indicated that the building and land contributed equally to the total price. Xaroh 31 Paid tes,000 cash to acquire the goodwill and certain tangible assets of kris xyth, Inc. The fair valuen of the tangible assets aoquired vere $15,000 for band equipment and $55,000 for recording aquipment 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 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 residual value of $26,000. 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 Req 18 Req 2Req 3 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 For 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 residual value of $26,000. TIP: Calculate depreciation from the acquisition date to the end of the quarter. (Do not round intermediate calculations) Show less Partial Year Vchicle Building
