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Randy's Restaurant Company RRC entered into the following transactions during a recent year.
April Purchased equipment a new walkin cooler for $ by paying $ cash and signing a $ note due in six months.
April Enhanced the equipment by replacing the airconditioning system in the walkin cooler at a cost of $ purchased on account.
April Wrote a check for the amount owed on account for the work completed on April
May A local carpentry company repaired the restaurant's front door, for which RRC wrote a check for the full $ cost
June Paid $ cash for the rights to use the name and store concept created by a different restaurant that has been successful in the region.
b Prepare the journal entries for each of the above transactions.
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 Equipment is depreciated using the straightline method with a useful life of five years and no residual value. The RRC franchise right is amortized using the straightline method with a useful life of four years and no residual value.
Prepare a journal entry to record the depreciation and amortization, if any, calculated in requirement
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Prepare the journal entries for each of the above transactions. If no entry is required for a transactionevent select No Journal Entry
Required" in the first account field.
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Record the franchise rights purchased for $ for the use of the name and store concept that was created by a different restaurant.
Note: Enter debits before credits.
tableDateGeneral Journal,Debit,CreditJune
Record the purchase of a new walkin cooler for $ paying $ cash and signing a note for the rest.
Record the equipment by replacing the airconditioning system in the walkin cooler at a cost of $ purchased on account.
Record the payment in full for the installation of the air conditioning system.
Record the payment of $ incurred on the repairs to the restaurant's front door.
Record the franchise rights purchased for $ for the use of the name and store concept that was created by a different restaurant.
Information must be filled in the Journal Entry Worksheet.