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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 Purchased a tour bus for $ by paying $ cash and signing a $ note due in two years. In its accounting system, the company records the vehicle distinct from other types of equipment.
January After the bus was used for nearly one week, it was painted with the logos of the two bands at a cost of $ 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 Wrote a check for the amount owed on account for the work completed on January
February Purchased new speakers and amplifiers and wrote a check for the full $ cost
February Paid $ cash for minor repairs to the tour bus.
March Paid $ cash and signed a $ fiveyear note to purchase a small office building and land. An appraisal indicated that the building and land contributed equally to the total price.
March Paid $ cash to acquire the goodwill and certain tangible assets of Kris Myth Incorporated. The fair values of the tangible assets acquired were $ for band equipment and $ for recording equipment.
Required
a Complete the following accounting equation table 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.
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