The following iforaion applies to the quessoms dispiayed be

, The following iforaion applies to the quessoms dispiayed below Randy\'s Ressaurant Company (RRC) entered into the following trasactio during a necent year Aprilt Puechased a new food locker for $5,800 by paying $1400 cash and signing $4,400 mote due in s monthh een ? bmiled an air-condienng system pie tood tocker et cost or sa 400purchased or, account pr3o Whoe✓ for the mount owed on account for the work completed on Ap May1 A local cenbry company repaired the restaurants ront door for whch C wrote check for the ful $60 cost une1 Paid $10080 cash for the righs to use the name and stone concept created by a derent estaurant that has been successul in the region For the net lour years, RC will oprate under the Muilet Restaurent name, with the siogan business oushomes in the t and partiers in the

Solution

Answer -

1b. Preparing Journal entries for above transactions

2. Calculating Depreciation for Equipment and Franchise Rights

3. Preparing Journal Entry for Above Depreciation and Amortization

Date	General Journal	Debit ($)	Credit($)
April,1	Food Locker	5,800
	Cash		1,400
	Notes Payable		4,400
	(To record purchase of new food locker)
Apr,2	Air Condition System	3,400
	Accounts Payable		3,400
	(To record purchase of new air condition)
Apr,30	Accounts Payable	3,400
	Cash		3,400
	(To record payment of accounts payable)
May,1	Repairs Expenses	160
	Cash		160
	(To record payment of repairs expenses)
jun,1	Franchise Rights	10,800
	Cash		10,800
	(To record payment for Franchise rights obtained)