Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Palmer Cook Music Productions manages and operates two bands. The company entered into the following transactions during a recent year aranyar the story with 4,

image text in transcribed
image text in transcribed
image text in transcribed
Palmer Cook Music Productions manages and operates two bands. The company entered into the following transactions during a recent year aranyar the story with 4, t. The lat t erly of CPO-3 Part 1-b to 3 1. Prepare the malentines for each of the above transactions 2. For the table and intangible assets acquired in the precedinga cions determine the amount of depreciation and amortion that Pamer Cock Music Productions should report for the quarter ended March For convenience the equipment and vehicle are deprecated the same way using the straight line method with a useful life of five years and no residual value. The buding is deprecated using the double decling balance method with a 10 year usefule and residual value of $36.000. 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 Answer is not complete Complete this question by entering your answers in the tabs below R2 Red Prepare the journal entries for each of the above transactions. If entry is reed for a transaction event, select "No Journal Entry Required in the first account field) Jan 02 Equipe Notes Payable Equip Accounts Payable Accounts Payable Fo01 E ME OOO 0000 15 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 $100,000 by paying $36,000 cash and signing a 564,000 note due in two years. In its accounting systen, 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 $45e, 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 $36,000 cost. February 8 Paid $350 cash for minor repairs to the tour bus. March 1 Paid $36,000 cash and signed a $270,000 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 $95.000 cash to acquire the goodwill and certain tangible assets of Kris' Myth, Inc. The fair values of the tangible assets acquired were $25,000 for band equipment and $65,000 for recording equipment. CP9-3 Part 1-b to 3 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 $36.000. 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 Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1B Reg 2 Reg 3 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 $36,000. TIP: Calculate depreciation from the acquisition date to the end of the quarter. (Do not round Intermediate calculations.) Show less Vahide Partial Year BT $ 1.213 $ 2.599 Equipment Bubing C Reg 13 Req3 > 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 $100,000 by paying $36,000 cash and signing a $64,000 note due in two years. In Its accounting system, the company records the vehicle distinct from other types of equipment, January 3 After the bus was used for nearly one week, it was painted with the logos of the two bands at a cost of $450, 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 $36, eee cost. February 8 Paid $350 cash for minor repairs to the tour bus. March 1 Paid $36,000 cash and signed $270,000 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 $95,000 cash to acquire the goodwill and certain tangible assets of Kris' Myth, Inc. The fair values of the tangible assets acquired were $25,000 for band equipment and $65, eee for recording equipment. CP9-3 Part 1-5 to 3 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 $36,000. 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 Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1B Reg 2 Reg 3 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.) No Date Mar 31 Credit General Journal Depreciation Expense Depreciation Expense Depreciation Expense Accumulated Depreciation Buildings Accumulated Depreciation Vehicles Accumulated Depreciation Equipment Debit 2,5993 4.877 1.213 2,599 4,877 1.213

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Auditing And Other Assurance Services

Authors: Ray Whittington, Kurt Pany

22nd Edition

126059808X, 978-1260598087

More Books

Students also viewed these Accounting questions

Question

=+What needs to be said first?

Answered: 1 week ago

Question

=+You couldn't expect more from a cow, could you?

Answered: 1 week ago