Current Attempt in Progress Described below are certain transactions of Bonita Corporation. The company uses the periodic inventory system. 1. On February 2, the corporation purchased goods from Metlock Company for $69,500 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26. 2. 3. On April 1, the corporation bought a truck for $50,000 from Oriole Motors Company, paying $3,000 in cash and signing a 1- year, 12% note for the balance of the purchase price. On May 1, the corporation borrowed $88,300 from Chicago National Bank by signing a $98,140 zero-interest-bearing note due 1 year from May 1.
Current Attempt in Progress Described below are certain transactions of Bonita Corporation. The company uses the periodic inventory system. 1. On February 2, the corporation purchased goods from Metlock Company for $69,500 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26. 2. 3. On April 1, the corporation bought a truck for $50,000 from Oriole Motors Company, paying $3,000 in cash and signing a 1- year, 12% note for the balance of the purchase price. On May 1, the corporation borrowed $88,300 from Chicago National Bank by signing a $98,140 zero-interest-bearing note due 1 year from May 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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am. 186.
Transcribed Image Text:Current Attempt in Progress
Described below are certain transactions of Bonita Corporation. The company uses the periodic inventory system.
1. On February 2, the corporation purchased goods from Metlock Company for $69,500 subject to cash discount terms of 2/10,
n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was
paid on February 26.
2.
3.
On April 1, the corporation bought a truck for $50,000 from Oriole Motors Company, paying $3,000 in cash and signing a 1-
year, 12% note for the balance of the purchase price.
On May 1, the corporation borrowed $88,300 from Chicago National Bank by signing a $98,140 zero-interest-bearing note
due 1 year from May 1.
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