Randy's Restaurant Company (RRC) entered into the following transactions during a recent year. April 1 Purchased equipment (a new walk-in cooler) for $9,000 by paying $3,000 cash and signing a $6,000 note due in six months. April 2 Enhanced the equipment (by replacing the air-conditioning system in the walk-in cooler) at a cost of $5,000, purchased on account. April 30 Wrote a check for the amount owed on account for the work completed on April 2 May 1 A local carpentry company repaired the restaurant's front door, for which RRC wrote a check for the full $320 cost. June 1 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.
Randy's Restaurant Company (RRC) entered into the following transactions during a recent year. April 1 Purchased equipment (a new walk-in cooler) for $9,000 by paying $3,000 cash and signing a $6,000 note due in six months. April 2 Enhanced the equipment (by replacing the air-conditioning system in the walk-in cooler) at a cost of $5,000, purchased on account. April 30 Wrote a check for the amount owed on account for the work completed on April 2 May 1 A local carpentry company repaired the restaurant's front door, for which RRC wrote a check for the full $320 cost. June 1 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PB9-3 (Algo) Analyzing and Recording Long-Lived Asset Transactions with Partial-Year Depreciation [LO
9-2, LO 9-3, LO 9-6]
[The following information applies to the questions displayed below.]
Randy's Restaurant Company (RRC) entered into the following transactions during a recent year.
April 1 Purchased equipment (a new walk-in cooler) for $9,000 by paying $3,000 cash and signing a $6,000 note due in six months.
April 2 Enhanced the equipment (by replacing the air-conditioning system in the walk-in cooler) at a cost of $5,000, purchased on
account.
April 30 Wrote a check for the amount owed on account for the work completed on April 2.
May 1 A local carpentry company repaired the restaurant's front door, for which RRC wrote a check for the full $320 cost.
June 1 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.
PB9-3 (Algo) Part 1-a
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
April 01
April 01
April 02
April 30
May 01
June 01
June 01
Assets
=1
=
=
=
=
=
Liabilities
+
+
+
Stockholders' Equity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6b0c5d08-d79c-40eb-9039-a464570e43f9%2F19c3eb12-e17c-4810-978a-e19fa387a03b%2F64uwgrc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2
ces
PB9-3 (Algo) Analyzing and Recording Long-Lived Asset Transactions with Partial-Year Depreciation [LO
9-2, LO 9-3, LO 9-6]
[The following information applies to the questions displayed below.]
Randy's Restaurant Company (RRC) entered into the following transactions during a recent year.
April 1 Purchased equipment (a new walk-in cooler) for $9,000 by paying $3,000 cash and signing a $6,000 note due in six months.
April 2 Enhanced the equipment (by replacing the air-conditioning system in the walk-in cooler) at a cost of $5,000, purchased on
account.
April 30 Wrote a check for the amount owed on account for the work completed on April 2.
May 1 A local carpentry company repaired the restaurant's front door, for which RRC wrote a check for the full $320 cost.
June 1 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.
PB9-3 (Algo) Part 1-a
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
April 01
April 01
April 02
April 30
May 01
June 01
June 01
Assets
=1
=
=
=
=
=
Liabilities
+
+
+
Stockholders' Equity
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