Required information PB9-3 (Algo) Analyzing and Recording Long-Llved Asset Transactions with Partlal-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 $6,400 by paying $1,700 cash and signing a $4,700 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 $3,700, purchased on account. April sowrote a check for the anount owed on account for the work completed on April 2. May 1A local carpentry company repaired the restaurant's front door, for which Rac wrote a check for the full $190 cost. June 1 Paid $10,800 cash for the rights to use the nase 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 Record the purchase of a new walk-in cooler for $6,400 paying $1,700 cash and signing a note for the rest. Note: Enter debits before credits. Journal entry worksheet Record the equipment (by replacing the air-conditioning system in the walk-in cooler) at a cost of $3,700, purchased on account. Note: Enter debits before credits. Journal entry worksheet Record the payment in full for the installation of the air conditioning system. Note: Enter debits before credits. Journal entry worksheet Record the payment of $190 incurred on the repairs to the restaurant's front door. Note: Enter debits before credits. Journal entry worksheet Record the franchise rights purchased for $10,800 for the use of the name and store concept that was created by a different restaurant. Note: Enter debits before credits. 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 depreciate using the straight-line method with a useful life of five years and no residual value. The RRC franchise right is amortized usin 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. Complete this question by entering your answers in the tabs below. 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 R.C 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.) Complete this question by entering your answers in the tabs below. Prepare a journal entry to record the depreciation and amortization, if any, calculated in requirement 2. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet 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
