Required information PB9-3 (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.] Randy's Restaurant Company (RRC) entered into the following transactions during a recent year. April 1 Purchased equipment (a new walk-in cooler) for $8,600 by paying $2,800 cash and signing a $5,800 note due in six months. April 2 Enhanced the equipment (by replacing the air-conditioning system in the walk-in cooler) at a cost of $4,800, purchased on account. April 30 Wrote a check for the amount owed on account for the work completed on April 2. May 1A local carpentry company repaired the restaurant's front door, for which RRC wrote a check for the full $300 cost. June 1 Paid $13,440 cash for the rights to use the name and store concept created by a different restaurant that has been successful in the region. PB9-3 (Algo) 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, if any, that Randy's Restaurant Company should report for the quarter ended June 30. Equipment is depreciated using the straight-line method with a useful life of five years and no residual value. The RRC franchise right is amortized using the straight-line method with a useful life of four years and no residual value. 3. Prepare a journal entry to record the depreciation and amortization, if any, calculated in requirement 2. Journal entry worksheet < 1 2 3 4 5 Record the purchase of a new walk-in cooler for $8,600 paying $2,800 cash and signing a note for the rest. General Journal Debit Credit Note: Enter debits before credits. Date April 01 Record entry Clear entry View general journal > Journal entry worksheet < 1 2 3 4 5 Record the equipment (by replacing the air-conditioning system in the walk-in cooler) at a cost of $4,800, purchased on account. Note: Enter debits before credits. Date April 02 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 Record the payment in full for the installation of the air conditioning system. Note: Enter debits before credits. Date April 30 General Journal Debit Credit Record entry Clear entry View general journal > Journal entry worksheet < 1 2 3 4 5 Record the payment of $300 incurred on the repairs to the restaurant's front door. Note: Enter debits before credits. Date May 01 General Journal Debit Credit Record entry Clear entry View general journal > View transaction list Journal entry worksheet < 1 2 3 4 5 Record the franchise rights purchased for $13,440 for the use of the name and store concept that was created by a different restaurant. Note: Enter debits before credits. Date June 01 General Journal Debit Credit Record entry Clear entry View general journal Req 18 Req 2 Req 3 For the tangible and intangible assets acquired in the preceding transactions, determine the amount of depreciation and amortization, if any, that Randy's Restaurant Company should report for the quarter ended June 30. Equipment is depreciated using the straight-line method with a useful life of five years and no residual value. The RRC franchise right is amortized using the straight-line method with a useful life of four years and no residual value. (Do not round intermediate calculations.) Show less A Depreciation-Equipment Amortization-Licensing Rights Partial Year < Req 1B Req 3 > Record the depreciation and amortization expenses on the walk-in cooler and franchise rights for the quarter ended June 30. Note: Enter debits before credits. Date June 30 General Journal Debit Credit Record entry Clear entry View general journal