Randy's Restaurant Company (RRC) entered into the following transactions during a recent year. April 1 Purchased equipment (a new walk-in cooler) for $9,000 by paying $3,000 cash and signing a $6,000 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 $5,000, purchased on account. April 30 Wrote a check for the amount owed on account for the work completed on April 2 May 1 A local carpentry company repaired the restaurant's front door, for which RRC wrote a check for the full $320 cost. June 1 Paid $13,920 cash for the rights to use the name and store concept created by a different restaurant that has been successful in the region.

Randy's Restaurant Company (RRC) entered into the following transactions during a recent year. April 1 Purchased equipment (a new walk-in cooler) for $9,000 by paying $3,000 cash and signing a $6,000 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 $5,000, purchased on account. April 30 Wrote a check for the amount owed on account for the work completed on April 2 May 1 A local carpentry company repaired the restaurant's front door, for which RRC wrote a check for the full $320 cost. June 1 Paid $13,920 cash for the rights to use the name and store concept created by a different restaurant that has been successful in the region.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 29P

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