Randy's Restaurant Company (RRC) entered into the following transactions during a recent year. April 1 Purchaned...

 

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Randy's Restaurant Company (RRC) entered into the following transactions during a recent year. April 1 Purchaned equipnent (a new valk-in cooler) tor 7,200 by paying 12,100 cash and aigning a 85,100 note due in six montha. April 2 Enhanced the equipnent (by replacing the air-conditioning syeten in the walk-in cooler) at A cost of 64,100, purehaned on aceount. April 30 Mrote a check for the amount oved on account for the work completed on April 2. Hay 1 A local earpentry company repaired the restaurant' front door, for which RRC vrote a check tor the full 6230 cont. June 1 Paid 511,760 cash for the righta to use the nane and store concept ereated by a aitterent restaurant that han been auccesutul in the region. 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 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 calculated in requirement 2 Randy's Restaurant Company (RRC) entered into the following transactions during a recent year. April 1 Purchaned equipnent (a new valk-in cooler) tor 7,200 by paying 12,100 cash and aigning a 85,100 note due in six montha. April 2 Enhanced the equipnent (by replacing the air-conditioning syeten in the walk-in cooler) at A cost of 64,100, purehaned on aceount. April 30 Mrote a check for the amount oved on account for the work completed on April 2. Hay 1 A local earpentry company repaired the restaurant' front door, for which RRC vrote a check tor the full 6230 cont. June 1 Paid 511,760 cash for the righta to use the nane and store concept ereated by a aitterent restaurant that han been auccesutul in the region. 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 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 calculated in requirement 2

Answer rating: 100% (QA)

1Journal Entries Date General Journal Debit Credit April 1 Equipment 8400 Cash 2700 Note Payable 57... View the full answer