Required information [The following information applies to the questions displayed below.] Palmer Cook Music Productions manages and operates two bands. The company entered into the following transactions during a recent year. January 2 Purchased a tour bus for $98,000 by paying $35,000 cash and signing a $63,000 note due in two years. In its accounting system, the company records the vehicle distinct from other types of equipment. January 8 After the bus was used for nearly one week, it was painted with the logos of the two bands at a cost of $400, on account. The logos did not increase the lifespan, operating capacity, or operating efficiency of the bus, but they were thought to be useful in promoting the bands. 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 $34,500 cost. February 8 Paid $300 cash for minor repairs to the tour bus. March 1 March 31 Paid $35,000 cash and signed a $265,000 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 $94,000 cash to acquire the goodwill and certain tangible assets of Kris' Myth, Incorporated. The fair values of the tangible assets acquired were $24,000 for band equipment and $64,000 for recording equipment. Required: 1-a. Complete the following accounting equation table for the above transactions. TIP: Goodwill is recorded as the excess of the purchase price over the fair value of individual assets. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) Date January 02 January 02 January 08 Assets Liabilities +
Required information [The following information applies to the questions displayed below.] Palmer Cook Music Productions manages and operates two bands. The company entered into the following transactions during a recent year. January 2 Purchased a tour bus for $98,000 by paying $35,000 cash and signing a $63,000 note due in two years. In its accounting system, the company records the vehicle distinct from other types of equipment. January 8 After the bus was used for nearly one week, it was painted with the logos of the two bands at a cost of $400, on account. The logos did not increase the lifespan, operating capacity, or operating efficiency of the bus, but they were thought to be useful in promoting the bands. 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 $34,500 cost. February 8 Paid $300 cash for minor repairs to the tour bus. March 1 March 31 Paid $35,000 cash and signed a $265,000 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 $94,000 cash to acquire the goodwill and certain tangible assets of Kris' Myth, Incorporated. The fair values of the tangible assets acquired were $24,000 for band equipment and $64,000 for recording equipment. Required: 1-a. Complete the following accounting equation table for the above transactions. TIP: Goodwill is recorded as the excess of the purchase price over the fair value of individual assets. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) Date January 02 January 02 January 08 Assets Liabilities +
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Required information
[The following information applies to the questions displayed below.]
Palmer Cook Music Productions manages and operates two bands. The company entered into the following transactions
during a recent year.
January 2 Purchased a tour bus for $98,000 by paying $35,000 cash and signing a $63,000 note due in two
years. In its accounting system, the company records the vehicle distinct from other types of
equipment.
January 8 After the bus was used for nearly one week, it was painted with the logos of the two bands at a
cost of $400, on account. The logos did not increase the lifespan, operating capacity, or
operating efficiency of the bus, but they were thought to be useful in promoting the bands.
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 $34,500 cost.
February 8 Paid $300 cash for minor repairs to the tour bus.
March 1 Paid $35,000 cash and signed a $265,000 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.
March 31 Paid $94,000 cash to acquire the goodwill and certain tangible assets of Kris' Myth,
Incorporated. The fair values of the tangible assets acquired were $24,000 for band equipment and
$64,000 for recording equipment.
Required:
1-a. Complete the following accounting equation table for the above transactions. TIP: Goodwill is recorded as the excess of the
purchase price over the fair value of individual assets. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a
minus sign.)
Date
January 02
January 02
January 08
Assets
Liabilities
+](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7d2d698d-09ca-4644-acfc-cb348702643f%2Fcf377d7a-5184-4c39-a603-306775afeb3d%2Fe35i516_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Palmer Cook Music Productions manages and operates two bands. The company entered into the following transactions
during a recent year.
January 2 Purchased a tour bus for $98,000 by paying $35,000 cash and signing a $63,000 note due in two
years. In its accounting system, the company records the vehicle distinct from other types of
equipment.
January 8 After the bus was used for nearly one week, it was painted with the logos of the two bands at a
cost of $400, on account. The logos did not increase the lifespan, operating capacity, or
operating efficiency of the bus, but they were thought to be useful in promoting the bands.
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 $34,500 cost.
February 8 Paid $300 cash for minor repairs to the tour bus.
March 1 Paid $35,000 cash and signed a $265,000 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.
March 31 Paid $94,000 cash to acquire the goodwill and certain tangible assets of Kris' Myth,
Incorporated. The fair values of the tangible assets acquired were $24,000 for band equipment and
$64,000 for recording equipment.
Required:
1-a. Complete the following accounting equation table for the above transactions. TIP: Goodwill is recorded as the excess of the
purchase price over the fair value of individual assets. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a
minus sign.)
Date
January 02
January 02
January 08
Assets
Liabilities
+
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