Need help with number 1, 2, and 3 please!! Palmer Cook Productions manages and o

Question

Need help with number 1, 2, and 3 please!!

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 $94,000 by paying $33,000 cash and signing a $61,000 note due in two years. January 2 January 8 The bus was painted with the logos of the two bands at a cost of $300, 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 $31,500 cost. February 8 Paid $200 cash to tune up the tour bus, March1 Paid $33,000 cash and signed a $255,000 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 $92,000 cash to acquire the goodwill and certain tangible assets of Kris' Myth, Inc. The fair values of the tangible assets acquired were $22,000 for band equipment and $62,000 for March 31

Explanation / Answer

1.

2.

Calculation of depreciation:

* No. of Days in Year assumed to be 360 Days

3.

Assets Amount Liabilities Amount Shareholder's Equity Amount 2-Jan Vehicle $    94,000.00 Note Payable $    61,000.00 Cash $ (33,000.00) 8-Jan Trade Payable $          300.00 Marketing $ (300.00) 30-Jan Cash $        (300.00) Trade Payable $        (300.00) 8-Feb Cash $        (200.00) Tuneup Cost $ (200.00) 1-Mar Cash $ (33,000.00) Note Payable $ 255,000.00 Building $ 144,000.00 Land $ 144,000.00 31-Mar Band Equipment $    22,000.00 Recording equipment $    62,000.00 Goodwill $      8,000.00 Cash $ (92,000.00) $ 315,500.00 $ 316,000.00 $ (500.00)

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.