ezto.mheducation CH 9 Assignment Check Your Wor Palmer Cook Productions manages

Question

ezto.mheducation CH 9 Assignment Check Your Wor Palmer Cook Productions manages and operates two rock bands. The company entered into the following transactions during a recent year Purchased a tour bus for $106,000 by paying $39,000 cash and signing a $67000 note due in two years. January 2 January 8 The bus was painted with the logos of the two bands at a cost of $600, on account 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 $40,500 cost. February 8 Paid $500 cash to tune up the tour bus. March 1 Paid $39,000 cash and signed a $285,000 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. Paid $98,000 cash to acquire the goodwill and certain tangible assets of Kris' Myth, Inc. The fair values of the tangible assets acquired were $24,000 for band equipment and $62.000 for recording equipment March 31 CP9-3 Analyzing and Recording Long-Lived Asset Transactions with Partial-Yeer Depreciation LO 9-2 LO 9-3, LO 9-6) Section Break velue: 1.81 points CP93 Part 1a

Explanation / Answer

Date Account Title Debit Credit Jan.2 Vehicle $1,06,000.00 Cash $39,000.00 Note Payable $67,000.00 jan.8 Vehicle $600.00 Accounts payable $600.00 Jan.30 Accounts payable $600.00 Cash $600.00 Feb.1 Equipment $40,500.00 Cash $40,500.00 Feb.8 Repairs to vehicle $500.00 Cash $500.00 Mar.1 Land $1,62,000.00 Office Building $1,62,000.00 Cash $39,000.00 5-year Note payable $2,85,000.00 Mar.31 Equipment $86,000.00 Goodwill $12,000.00 Cash $98,000.00 Mar.31 Depreciation Expense $9,350.00 Accumulated Depreciation - Vehicle $5,300.00 Accumulated Depreciation - Equipment $1,350.00 Accumulated Depreciation - Office Building $2,700.00 Working: Asset Cost Date of purchase Period - current year Life - Years Dep.method Dep.Rate Depreciation for 1st quarter Vehicle 106000 Jan.2 3 months 5 St.Line 20% 5300 Equipment 40500 Feb.1 2 months 5 St.Line 20% 1350 Office Building 162000 Mar.1 1 months 10 Double.Decl. Balance 20% 2700 Equipment 86000 Mar.31 0 months 5 St.Line 20% 0

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