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Palmer Cook Productions manages and operates two rock bands. The company entered into the following transactions during a recent year. January 2 Purchased a tour bus for $100,000 by paying $36,000 cash and signing a $64,000 note due in two years. January 8 The bus was painted with the logos of the two bands at a cost of $450, on account. 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 $36,000 cost. February 8 Paid $350 cash to tune up the tour bus. March 1 Paid $36,000 cash and signed a $270,000 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 $95,000 cash to acquire the goodwill and certain tangible assets of Kris Myth, Inc. The fair values of the tangible assets acquired were $25,000 for band equipment and $65,000 for recording equipment

1

Record the purchase of a tour bus for $100,000, paying $36,000 cash and financing the rest.

2

Record the painting charges of $450 on account.

3

Record the payment in full for the painting charges.

4

Record the purchase of speakers and amplifiers for $36,000 cash.

5

Record the cash expense of $350 incurred to tune up the tour bus.

6

Record the purchase of a small office building and land for $36,000 cash and $270,000 five year note.

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