Required information CP9-3 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 January January February February March 2 Purchased a tour bus for $102,000 by paying $37.000 cash and signing a $65,000 note due in two years. In Its accounting system, the company records the vehicle distinct from other types of equipment. 8 After the bus was used for nearly one week, it was painted with the logos of the two bands at a cost of $500, 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. 30 wrote a check for the amount owed on account for the work completed on January 8. 1 Purchased new speakers and amplifiers and wrote a check for the full $37,500 cost. 8 Paid $400 cash for minor repairs to the tour bus. 1 Paid $37,000 cash and signed a $275,000 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. 31 Paid $95.000 cash to acquire the goodwill and certain tangible assets of Kris Hyth, Inc. The fair values of the tangible assets acquired were $22,000 for band equipment and 560,000 for recording equipment. March CP9-3 Part 1-a Required information Check my work 1a. 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 January 02 Liabilities January 08 January 30 February 01 February 08 March 01 March 31 351 PM Journal entry worksheet 2 3 Record the purchase of a tour bus for $102,000, paying $37,000 cash and financing the rest. Note: Enter debits before credits. Date General Journal Debit Credit Jan 02 Record entry Clear entry View general journal Journal entry worksheet 45 Record the painting charges of $500 on account. Note: Enter debits before credits. General Journal Debit Credit Jan 08 Record entry Clear entry View general journal Journal entry worksheet Journal entry worksheet Journal entry worksheet Journal entry worksheet 2 3 4 5 Record the purchase of a small office building and land for $37,000 cash and $275,000 five year note. Note: Enter debits before credits. Date General Journal Debit Credit Mar 01 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 Record the purchase of goodwill and tangible assets for $96,000 cash. Note: Enter debits before credits. Date General Journal Debit Credit Mar 31 Record entry Clear entry View general journal Required information 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 1B Reg 2 Req3 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 $37,000. TIP: Calculate depreciation from the acquisition date to the end of the quarter. (Do not round intermediate calculations.) Show less Partial Year Vehicle Equipment Building Journal entry worksheet Record the depreciation expense for the three assets at the end of the quarter. Note: Enter debits before credits. Date General Journal Debit Credit Mar 31 C Record entry Clear entry View general journal