Question
[The following information applies to the questions displayed below.] Randys Restaurant Company (RRC) entered into the following transactions during a recent year. April 1 Purchased
[The following information applies to the questions displayed below.]
Randys Restaurant Company (RRC) entered into the following transactions during a recent year.
April | 1 | Purchased equipment (a new walk-in cooler) for $5,600 by paying $1,300 cash and signing a $4,300 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 $3,300, purchased on account. | ||
April | 30 | Wrote a check for the amount owed on account for the work completed on April 2. | ||
May | 1 | A local carpentry company repaired the restaurants front door, for which RRC wrote a check for the full $150 cost. | ||
June | 1 | Paid $9,840 cash for the rights to use the name and store concept created by a different restaurant that has been successful in the region. |
1.For the tangible and intangible assets acquired in the preceding transactions, determine the amount of depreciation and amortization that Randys 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.
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