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Required information CP9-3 (Algo) Analyzing and Recording Long-Lived Asset Transactions with Partial-Year Depreciation (LO 9-2, LO 9-3, LO 9-6] The following information applies to the

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Required information CP9-3 (Algo) Analyzing and Recording Long-Lived Asset Transactions with Partial-Year Depreciation (LO 9-2, LO 9-3, LO 9-6] The following information applies to the questions displayed below.) 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 $106,000 by paying $39,000 cash and signing a $67,908 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 $600, 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 check for the amount owed on ount for the work completed on Janua 8 February 1 Purchased new speakers and amplifiers and wrote a check for the full $48,500 cost. February 8 Paid $500 cash for minor repairs to the tour bus March 1 Paid $39,000 cash and signed a $285,000 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 $98,000 cash to acquire the goodwill and certain tangible assets of Kris' Myth, Incorporated. The fair values of the tangible assets acquired were $24,890 for band equipment and $62,000 for recording equipment. CP9-3 (Algo) Part 1-0 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 8-year useful life and residual value of $39,000. 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

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