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Required information [ The following information applies to the questions displayed below. ] Palmer Cook Music Productions manages and operates two bands. The company entered
Required information
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 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.
Answer is not complete.
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