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 $92,000 by paying $32,000 cash and signing a $60,000 note due in two years. In its accounting system, the company records the vehicle distinct from other types of equipment.
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 $950, 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 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 full $30,000 cost.
February 8 Paid $850 cash for minor repairs to the tour bus.
March 1 Paid $32,000 cash and signed a $250,000 five-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 $91,000 cash to acquire the goodwill and certain tangible assets of Kris' Myth, Inc. The fair values of the tangible assets acquired were $21,000 for band equipment and $61,000 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 10-year useful life and residual value of $32,000. 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 .
Precision Construction entered into the following transactions during a recent year. January 2 Purchased a bulldozer for $290,000 by paying $40,000 cash and signing a $250,000 note due in five years. January 3 Replaced the steel tracks on the bulldozer at a cost of $40,000, purchased on account. The new steel tracks increase the bulldozer's operating efficiency. January 30 Wrote a check for the amount owed on account for the work completed on January 3. February 1 Repaired the leather...
January 2 Purchased a bulldozer for $250,000 by paying $20,000 cash and signing a $230,000 note due in five years.January 3 Replaced the steel tracks on the bulldozer at a cost of $20,000, purchased on account. The new steel tracks increase the bulldozer's operating efficiency.January 30 Wrote a check for the amount owed on account for the work completed on January 3. February 1 Repaired the leather seat on the bulldozer and wrote a check for the full $800 cost....
Saved Required information PA9-3 Analyzing and Recording Long-Lived Asset Transactions with Partial-Year Depreciation (LO 9-2, LO 9-3, LO 9-6) [The following information applies to the questions displayed below.) Precision Construction entered into the following transactions during a recent year January 2 Purchased a bulldozer for $258,000 by paying $24,000 cash and signing a $234,000 note due in five years. January 3 Replaced the steel tracks on the bulldozer at a cost of $24,000, purchased on account. The new steel tracks...
Required information [The following information applies to the questions displayed below) Precision Construction entered into the following transactions during a recent year January 2 Purchased bulldover for $284,000 by paying $37.000 cash and signing a $247,000 note due in five years January 3 Replaced the steelrak on the bulldone at a cost of $37.000, purchased on account. The new steel tracks increase the bulldozer's operating efficiency. January 30 wrote a check for the amount owed on account for the work...
Casting Crown Construction entered into the following transactions during a recent year: January 2 Purchased a bulldozer for $200,000 by paying $20,000 cash and signing a $180,000 note. January 3 Replaced the steel tracks on the bulldozer at a cost of $20,000, purchased on account. January 30 Wrote a cheque for the amount owed on account for the work completed on January 3. February 1 Replaced the seat on the bulldozer and wrote a cheque for the full $600 cost....
mework Help Seve Required information PA9-3 Analyzing and Recording Long-Lived Asset Transactions with Partial-Year Depreciation (LO 9-2, LO 9-3, LO 9-6] [The following information applies to the questions displayed below] Precision Construction entered into the following transactions during a recent year. January 2 Purchased a bulldozer for $252,000 by paying $21,000 cash and signing a $231,000 note due in five years. January 3 Replaced the steel tracks on the bulldozer at a cost of $21,000, purchased on account. The new...
Required information [The following information applies to the questions displayed below.] Precision Construction entered into the following transactions during a recent year January 2 Purchased a bulldozer for $268,000 by paying $29,000 cash and signing a $239,000 note due in five years. January 3 Replaced the steel tracks on the bulldozer at a cost of $29,000, purchased on account. The new steel tracks increase the bulldozer's operating efficiency January 30 wrote a check for the amount owed on account for...
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Endblast Productions showed the following selected asset balances on December 31, 2020: Land Building Accumulated depreciation, building Equipment Accumulated depreciation, equipment $428,800 558,400 406,400 187,200 81,000 "Remaining estimated useful life is eight years with a residual value of $20,000; depreciated using the straight-line method to the nearest whole month. 2Total estimated useful life is 10 years with a residual value of $24,000; depreciated using the double-declining balance method to the nearest whole month. Required:...
[The following information applies to the questions displayed below.] Randy’s 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...
Here are selected 2018 transactions of Wildhorse Corporation. Jan. 1 Retired a piece of furniture that was purchased on January 1, 2008. The furniture cost $56,460 and had a useful life of 10 years with no residual value. June 30 Sold equipment that was purchased on January 1, 2016. The equipment cost $37,350 and had a useful life of 3 years with no residual value. The equipment was sold for $4,900 cash. Dec. 31 Sold a vehicle for $8,920 cash....