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 2 purehased a tour bus for $78,000 by paying $25,000 eash and signing a $53,000 note due in two years. In its accounting system, the company records the vehicle distinct fron other types of equipnest. January 8 After the bus was used for nearly one week, it was painted with the logon of the two bands at a cost of 5600 , on aceount. The logos did not increane the lifespan, operating capacity, or operating efficiency of the bus, but they were thought to be uneful in pronoting the bands. January 30 Hrote a check for the amount owed on account for the work conpleted on January 8. rebruary 1 purchased new speakera and anplifiers and wrote a check for the full $19,500 cost. rebruary paid $500 caak for ininor repairi to the cour bus. Mareh i Yaid 525,000 eash and signed a 5215,000 five-year note to purehase a ma11 oftice building and land. An appraisal indioated that the building and land contributed equally to the total price. Mareh 31 Paid 584,000 canh to acquire the goodvili and certain tangible asnete of Krin' Myth, Incorporated. The tair values of the tangible assets acquired were $14,000 for band equipment and 554,000 for recording equipment. 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 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 $25,000. TIP: 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 joumal entries for each of the above transactions. (If no entry is required for a transaction/event, select "No 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 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 $25,000. TIP: Calculate depreciation from the acquisition date to the end of the quarter. (Do not round intermediate calculations.) 3. Prepare a journal entry to record the depreciation calculated in requirement 2 . ( Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare a journal entry to record the depreciation calculated in requirement 2. (Do not round intermediate calculations. If no entry is required for a transactionvevent, select "No Joumal Entry Required" in the first account field.)
