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. Danuary 2 Purchased a tour bus for $92,ee0 by paying $32,eee cash and s 0,8e8 note due in two years. In its accounting system, the company records the vehicle distinct from other types of equipment. r the bus was used for nearly one week, it was painted with the logos of the two bands at a cost of 95e, on account. The logos did not increase the lifespan, operating the bus, but they were thought to be useful in promoting the bands January 8 Afte capacity, or operating efficiency of Danuary 30 Wrote a check for the amount February 8 Paid $858 cash for minor repairs to the tour bus March 1 Paid $32,eee cash and signed a $250,008 f ive-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 $91,8e0 cash to acquire the goodwill and certain tangible assets of Kris' Myth, Inc. The fair val ues of the tangible assets acquired were $21,e80 for band equipnent and $61,089 for recording equipment 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 de preciation and 2 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 10-year useful life and residual value of $32 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 Prepare the journal entries for each of the above transactions. (If no entry is required for a transaction/ev Required" in the first account field.) Part 2 of 2 View transaction list 1.12 Import a new list 1 Record the purchase of a tour bus for $92,000, paying $32,000 cash and financing the rest. and 2 Record the painting charges of $950 on account. Record the payment in full for the painting charges. 4 Record the purchase of speakers and amplifiers for $30,000 cash. redit 5 Record the cash expense of $850 incurred to tune up the 60,000 tour bus. 6 Record the purchase of a small office building and land Note : -journal entry has been entered 32,000 for $32,000 cash and $250,000 five year note. Record entry Clear entry View general journal Prev 9 of 9 Ne 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. Complete this question by entering your answers in the tabs below. Req 18 Req 2 Req 3 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 10-year useful life and residual value of $32,000. TIP: Calculate depreciation from the acquisition date to the end of the quarter. (Do not round intermediate calculations.) Show lessA Partial Year Prey.9 of 9Next Req 2 Req 3 2 of 2 ca field.) Journal entry worksheet Record the depreciation expense for the three assets at the end of the quarter Clear entry 9 of 9
