[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 $6,000 by paying $1,500 cash and signing a $4,500 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 $3,500, purchased on account. April 30 Wrote a check for the amount owed on account for the work completed on April 2. May 1A local carpentry company repaired the restaurant's front door, for which RRC wrote a check for the full $170 cost. June 1 Paid $10,320 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-b to 3 1-b. Prepare the journal entries for each of the above transactions. 2. For the tangible and intangible assets acquired in the preceding transactions, determine the amount of depreciation and amortization, if any, that Randy's Restaurant Company should report for the quarter ended June 30. Equipment is depreciated using the straight-line method with a useful life of five years and no residual value. The RRC franchise right is amortized using the straight-line method with a useful life of four years and no residual value. 3. Prepare a journal entry to record the depreciation and amortization, if any, calculated in requirement 2
[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 $6,000 by paying $1,500 cash and signing a $4,500 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 $3,500, purchased on account. April 30 Wrote a check for the amount owed on account for the work completed on April 2. May 1A local carpentry company repaired the restaurant's front door, for which RRC wrote a check for the full $170 cost. June 1 Paid $10,320 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-b to 3 1-b. Prepare the journal entries for each of the above transactions. 2. For the tangible and intangible assets acquired in the preceding transactions, determine the amount of depreciation and amortization, if any, that Randy's Restaurant Company should report for the quarter ended June 30. Equipment is depreciated using the straight-line method with a useful life of five years and no residual value. The RRC franchise right is amortized using the straight-line method with a useful life of four years and no residual value. 3. Prepare a journal entry to record the depreciation and amortization, if any, calculated in requirement 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![[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 $6,000 by paying $1,500 cash and signing a $4,500 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 $3,500,
purchased on account.
April 30 Wrote a check for the amount owed on account for the work completed on April 2.
May 1A local carpentry company repaired the restaurant's front door, for which RRC wrote a check for the full $170
cost.
June 1 Paid $10,320 cash for the rights to use the name and store concept created by a different restaurant that has
been successful in the region. ۵
PB9-3 (Algo) Part 1-b to 3
1-b. Prepare the journal entries for each of the above transactions.
2. For the tangible and intangible assets acquired in the preceding transactions, determine the amount of depreciation and
amortization, if any, that Randy's Restaurant Company should report for the quarter ended June 30. Equipment is depreciated
using the straight-line method with a useful life of five years and no residual value. The RRC franchise right is amortized using the
straight-line method with a useful life of four years and no residual value.
3. Prepare a journal entry to record the depreciation and amortization, if any, calculated in requirement 2.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff04f5d75-8f8c-49dd-815b-84c665fcf63d%2F5b802e98-8774-46d7-b9a9-3426713a81bd%2Fbn56udh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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 $6,000 by paying $1,500 cash and signing a $4,500 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 $3,500,
purchased on account.
April 30 Wrote a check for the amount owed on account for the work completed on April 2.
May 1A local carpentry company repaired the restaurant's front door, for which RRC wrote a check for the full $170
cost.
June 1 Paid $10,320 cash for the rights to use the name and store concept created by a different restaurant that has
been successful in the region. ۵
PB9-3 (Algo) Part 1-b to 3
1-b. Prepare the journal entries for each of the above transactions.
2. For the tangible and intangible assets acquired in the preceding transactions, determine the amount of depreciation and
amortization, if any, that Randy's Restaurant Company should report for the quarter ended June 30. Equipment is depreciated
using the straight-line method with a useful life of five years and no residual value. The RRC franchise right is amortized using the
straight-line method with a useful life of four years and no residual value.
3. Prepare a journal entry to record the depreciation and amortization, if any, calculated in requirement 2.
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