5February 08 Repairs and Maintenance Expense Cash Required Information March 01B

Question

5February 08 Repairs and Maintenance Expense Cash Required Information March 01Buildings 153,000 153,000 The following intormation applies to the questions displiayed below Cash Notes Payable ong-term 6,000 Palmer Cook Productions manages and operates two rock bands. The compeny entered into the tollowing trensactions during a recent year. 7March 31 Goodw 5,000 90,000 Equipment Cash Januery 2 Purchased a tour bus for $100,000 by peying $36,000 cash and signing a 95,000 $64,000 note due in two yeers The bus was painted with the logos of the two bands at a cost of $450, on January 8 2. For the tangible and intangble assets acquired in he preceding transacions, determine the amount of depreciaion and amortiration 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 lite of five years and no residual value. The building is depreciated using the double-dedlining balance method, with a 10-year useful Iife and residual value of $36,000. (Do ot round intermediate Wote January & Purchased new seakers and amplifiers and wrote a check for the ful $36,000 January check for the arount owed on account for the work completed on February 1 Februery BPald $350 cesh to tune up the tour bus March 1 Paid $36,000 cash and signed a $270,000 five year note to puechase a smal TIP Caloulate depreciation from the acquistion date to the end of the quarter office building and lend. An epprasal Indiceted hat the building and lan combuted equaly fto the totel price Equipmen8400 Building102 March 31 Paid $95,000 cash to scquire the goodwilland certain tangible assets of Kris Myn, inc. The fir values of the tngble assets acquired were $25,000 for band equipment and 65,000 for recording equipment 3. Prepare a journal entry to record the depreciaion calculated in reqirement 2. (Do not round

Explanation / Answer

Date Account Debit credit Depreciation expense 115400 Accumulated depreciation -Vehicle 5000 Accumulated depreciation -Equipment 8400 Accumulated depreciation -Building 102000

Related Questions

Navigate

• Browse (All)
• Browse 5
• Subjects

---

---

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