Bonita Industries Inc. constructed a building and acquired five assets during the current year. Construction of Building: A building was constructed on land purchased last year at a cost of $ 283,200. Construction began on February 1 and was completed on November 1. The payments to the contractor were as follows.

Date		Payment
March 1		$ 424,800
July 1		324,500
October 1		383,500

Bonita obtained a $ 826,000, 8% construction loan on March 1. Bonita repaid the loan on October 1. Bonita had $ 472,000 of other outstanding debt during the year at a borrowing rate of 9%. Asset 1: Bonita acquired office furniture by making a $ 8,850 down payment and issuing a $ 11,800, 2-year, zero-interest-bearing note. The note is to be paid off in two $ 5,900 installments made at the end of the first and second years. It was estimated that the asset could have been purchased outright for $ 19,116. Asset 2: Bonita acquired manufacturing equipment by trading in used manufacturing equipment. (The exchange lacks commercial substance.) Facts concerning the trade-in are as follows.

Cost of equipment traded in		$ 61,360
Accumulated depreciation on equipment traded in - to date of sale		40,120
Fair value of equipment traded		29,500
Cash received		2,950
Fair value of equipment acquired		26,550

Asset 3: Four computers were acquired by issuing 500 shares of $ 1 par value common stock. The stock had a market price of $ 14 per share. Assets 4 and 5: Bonita purchased these assets together for a lump sum of $ 271,400 cash. The following information was gathered.

Description		Initial Cost on Sellers Books			Depreciation to Date on Sellers Books			Book Value on Sellers Books			Appraised Value
Forklifts		$ 88,500			$ 23,600			$ 64,900			$ 59,000
Equipment		212,400			47,200			165,200			194,700
Trucks		76,700			17,700			59,000			41,300

Record the acquisition of each of these assets. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

List of Accounts

Assistance Used

• Accounts Payable
• Accumulated Depreciation-Buildings
• Accumulated Depreciation-Equipment
• Accumulated Depreciation-Machinery
• Accumulated Depreciation-Trucks
• Buildings
• Cash
• Computers
• Common Stock
• Contribution Expense
• Contribution Revenue
• Cost of Goods Sold
• Depreciation Expense
• Direct Labor
• Discount on Notes Payable
• Equipment
• Factory Overhead
• Forklift
• Furniture
• Gain on Disposal of Buildings
• Gain on Disposal of Equipment
• Gain on Disposal of Machinery
• Gain on Disposal of Trucks
• Gain on Disposal of Plant Assets
• Insurance Expense
• Interest Expense
• Interest Payable
• Interest Revenue
• Inventory
• Land
• Land Improvements
• Loss on Disposal of Buildings
• Loss on Disposal of Equipment
• Loss on Disposal of Machinery
• Loss on Disposal of Trucks
• Machinery
• Maintenance and Repairs Expense
• Materials
• No Entry
• Notes Payable
• Organization Expense
• Paid-in Capital in Excess of Par - Common Stock
• Prepaid Insurance
• Retained Earnings
• Salaries and Wages Expense
• Sales Revenue
• Trading Securities
• Trucks

Bonita Industries Inc. constructed a building and acquired five assets during the current year. Construction of Building: A building was constructed on land purchased last year at a cost of $283,200. Construction began on February 1 and was completed on November 1. The payments to the contractor were as follows. Date Payment March 1 $ 424.800 July 1 324,500 October 1 383,500 Bonita obtained a $ 826,000,8% construction loan on March 1. Bonita repaid the loan on October 1. Bonita had $ 472,000 of other outstanding debt during the year at a borrowing rate of 9%. Asset 1: Bonita acquired office furniture by making a $8,850 down payment and issuing a $ 11,800, 2-year, zero-interest-bearing note. The note is to be paid off in two $ 5,900 installments made at the end of the first and second years. It was estimated that the asset could have been purchased outright for $ 19,116. Asset 2: Bonita acquired manufacturing equipment by trading in used manufacturing equipment. The exchange lacks commercial substance.) Facts concerning the trade-in are as follows. Cost of equipment traded in $ 61,360 Accumulated depreciation on equipment traded in- to date of sale 40,120 Fair value of equipment traded 29,500 Cash received 2,950 Fair value of equipment acquired 26,550 Asset 3: Four computers were acquired by issuing 500 shares of $ 1 par value common stock. The stock had a market price of $ 14 per share. Assets 4 and 5: Bonita purchased these assets together for a lump sum of $ 271,400 cash. The following information was gathered. Initial Cost on Seller's Books Depreciation to Date on Seller's Books Book Value on Seller's Books Description Appraised Value Forklifts $ 88,500 $ 23,600 $ 64,900 $59,000 Equipment 212,400 47,200 165.200 194,700 Trucks 76,700 17,700 59,000 41,300 Record the acquisition of each of these assets. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Acquisition of Asset 1 Acquisition of Asset 2 Acquisition of Asset 3 Acquisition of Assets 4 and 5