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 Purchased a tour bus for $102,600 by paying $37, e00 cash and signine a $65,600 note due in two years. In its accounting system, the conpany records the vehicle distinct fron other types of equiprent. January 8 After the bus was used for nearly one week, it was painted with the logos of the two bands at a cost of \$5e0, on account. The logos did not increase the lifespan, operating copacity, or operating efficiency of the bus, but they were thought to be useful in promoting the bands. January 30 . Wrote a check for the amount owed on account for the work completed on January 8. February 1 purchased new speakers and amplifiers and wrote a check for the fu11 $37,500 cost. february 8 Pald $400 cash for minor repairs to the tour bus. March 1 poid $37,000 cash and signed a $275, 60e five-year note to purchase a small office building and land. An appraisal indicated that the building and land contributed equally to the totsi price. March 31 Paid $96,0e0 cash to acquire the goodud11 and certain tangible assets of Kris' Myth, Incorporated. The fair values of the tangible assets acquired were $22, e00 for band equipment and $60,009 for recording equiptient. 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 Paimer 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 bullding is depreciated using the double-declining-balance method, with a 8 -year useful life and residual value of $37,000. TIP: Calculate depreciation from the acquisition date to the end of the quarter. 3. Prepore o journal entry to record the depreciation calculated in requirement 2 . Journal entry worksheet 2567 Record the purchase of a tour bus for $102,000, paying $37,000 cash and financing the rest. Note: Enter debits before credits. 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 $37,000. TIP: Calculate depreciation from the acquisition date to the end of the quarter. (Do not round intermediate calculations.) 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 transactionfevent, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record the depreciation expense for the three assets at the end of the quarter. Noce: Enter debits before credts
