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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
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 $96,000 by paying $34,000 cash and signing a $62,000 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 $350, 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 $33,000 cost. | ||
February | 8 | Paid $250 cash for minor repairs to the tour bus. | ||
March | 1 | Paid $34,000 cash and signed a $260,000 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 $93,000 cash to acquire the goodwill and certain tangible assets of Kris Myth, Inc. The fair values of the tangible assets acquired were $23,000 for band equipment and $63,000 for recording equipment. |
Required: 1-a. Complete the table below for the above transactions. TIP: Goodwill is recorded as the excess of the purchase price over the fair value of individual assets. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) Assets Liabilities Stockholders' Equity January 02 January 08 January 30 February 01 February 08 March 01 March 31
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