Bonita Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2025. The terms of acquisition for each truck are described below. 1. 2. 3. 4. Truck #1 has a list price of $29,550 and is acquired for a cash payment of $27,383. Truck #2 has a list price of $31,520 and is acquired for a down payment of $3,940 cash and a zero-interest-bearing note with a face amount of $27,580. The note is due April 1, 2026. Bonita would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has a borrowing rate of 8%. Truck #3 has a list price of $31,520. It is acquired in exchange for a computer system that Bonita carries in inventory. The computer system cost $23,640 and is normally sold by Bonita for $29,944. Bonita uses a perpetual inventory system. Truck #4 has a list price of $12,980. It is acquired in exchange for 920 shares of common stock in Bonita Corporation. The stock has a par value per share of $10 and a market price of $13 per share. Prepare the appropriate journal entries for the above transactions for Bonita Corporation. (Round present value factors to 5 decimal

Bonita Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2025. The terms of acquisition for each truck are described below. 1. 2. 3. 4. Truck #1 has a list price of $29,550 and is acquired for a cash payment of $27,383. Truck #2 has a list price of $31,520 and is acquired for a down payment of $3,940 cash and a zero-interest-bearing note with a face amount of $27,580. The note is due April 1, 2026. Bonita would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has a borrowing rate of 8%. Truck #3 has a list price of $31,520. It is acquired in exchange for a computer system that Bonita carries in inventory. The computer system cost $23,640 and is normally sold by Bonita for $29,944. Bonita uses a perpetual inventory system. Truck #4 has a list price of $12,980. It is acquired in exchange for 920 shares of common stock in Bonita Corporation. The stock has a par value per share of $10 and a market price of $13 per share. Prepare the appropriate journal entries for the above transactions for Bonita Corporation. (Round present value factors to 5 decimal

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 19E: Rix Company sells home appliances and provides installation and service for its customers. On April...

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