C Chegg Study | Guided So x M Final Exam Dezto. mheducation.com/hm.tpx Randy\'s

Question

C Chegg Study | Guided So x M Final Exam Dezto. mheducation.com/hm.tpx Randy's Restaurant Company (RRC) entered into the following transactions during a recent year. Purchased a new food locker for $9,000 by paying $3,000 cash and signing a $6,000 note due in six months. Installed an air-conditioning system in the food locker at a cost of $5,000, purchased on account. Wrote a check for the amount owed on account for the work completed on April 2 A local carpentry company repaired the restaurant's front door, for which RRC wrote a check for the full $320 cost. Paid $13,920 cash for the rights to use the name and store concept created by a different restaurant that has been successful in the region. For the next four years, RRC will operate under the Mullet Restaurant name, with the slogan "business customers in the front, and partiers in the back." April1 April 2 April 30 May1 June 1 29. Sso0 points value: Required Information 5.00 polnts Required 1-a. Complete the table below, indicating the account, amount, and direction of the effect for the above transactions. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign Date Assets Liabilities Stockholders' Equity April 01 April 02 April 30 May 01 June 01 3 8:02

Explanation / Answer

1.a,

Part B(1-b))

Ques 2.

partial year

Equipment   $700

Franchise rights $290

quest 3.

for quater ended june 30,

Depreciation on Equipment ( foodlocker) A/c    DR    700

Amortization on Franchise Rights A/c             DR   290

                               TO Profit or loss A/C                           990 Cr

no entries required for the above on March 31, as transactions taken place after march 31,

the entries are required only at the end of next year. so question of depreciation on mar 31,

If for next year , the depreciation had to be calculated annually,

DATE ASSETS Liabilities stock Holders Equity 1-Apr Food Locker 9000 (add+) Bills payable 6000 (Add+) Cash 3000 (Minus(-) 2-Apr Air conditioner system 5000 (add +) Air conditioner supplier 5000 ( add+) 30-Apr Bank 5000 (Minus-) Air conditioner supplier 5000 (minus-) 1-May Bank 320 (Minus-) 1-Jun cash 13920 (Minus-) Rights ( intangible asset) 13920 ( Add +)

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