I have asked a total of 5 people for this question and no one can seem to get it
ID: 2562073 • Letter: I
Question
I have asked a total of 5 people for this question and no one can seem to get it. Please only answer if you know it. I have completed the charts for 1a and 1b, and have provided them in case needed. I need help competing the charts that are not complete, which is number 2, and number 3. I have started them, but they are not complete.
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 $86,000 by paying $29,000 cash and signing a $57,000 note due in two years.
The bus was painted with the logos of the two bands at a cost of $800, on account.
Purchased new speakers and amplifiers and wrote a check for the full $25,500 cost.
Paid $29,000 cash and signed a $235,000 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 $88,000 cash to acquire the goodwill and certain tangible assets of Kris’ Myth, Inc. The fair values of the tangible assets acquired were $18,000 for band equipment and $58,000 for recording equipment.
Complete the table below, indicating the account, amount, and direction of the effect (+ for increase and for decrease) for the above transactions. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.)
TIP: Goodwill is recorded as the excess of the purchase price over the fair value of individual assets.
Prepare the journal entries for each of the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
NoDateGeneral JournalDebitCredit1January 02Vehicle86,0001Notes Payable (long-term)57,0001Cash29,0002January 08Repairs and Maintenance Expense8002Accounts Payable8003January 30Accounts Payable8003Cash8004February 01Equipment25,5004Cash25,5005February 08Repairs and Maintenance Expense7005Cash7006March 01Buildings132,0006Land132,0006Cash29,0006Notes Payable (long-term)235,0007March 31Goodwill12,0007Equipment76,0007Cash88,000
For the tangible and intangible assets acquired in the preceding transactions, determine the amount of depreciation and amortization that Palmer Cook 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 $29,000. (Do not round intermediate calculations).
TIP: Calculate depreciation from the acquisition date to the end of the quarter.
Prepare a journal entry to record the depreciation calculated in requirement 2. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
NoDateGeneral JournalDebitCredit1March 31Depreciation Expense1Accumulated Depreciation — Vehicle1Accumulated Depreciation — Equipment1Accumulated Depreciation — Building2,750
Palmer Cook Productions manages and operates two rock bands. The company entered into the following transactions during a recent year.
Explanation / Answer
1b. Journal Entries :
2. Depreciation on assets :
3. Adjusting entry for depreciation :
Date General Journal Debit Credit $ $ January 2 Vehicle 86,000 Cash 29,000 Notes Payable ( long term ) 57,000 January 8 Repairs and Maintenance Expense 800 Accounts Payable 800 January 30 Accounts Payable 800 Cash 800 February 1 Equipment 25,500 Cash 25,500 February 8 Repairs and Maintenance Expense 700 Cash 700 March 1 Land 132,000 Buildings 132,000 Cash 29,000 Notes Payable ( Long Term ) 235,000 March 31 Equipment 76,000 Goodwill 12,000 Cash 88,000Related Questions
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