Bonita Ranch & Farm is a distributor of ranch and farm equipment. Its products...
On January 1 , 2017 , Bonita sells augers to Mills Farm & Fleet for $ 35, 520 . Mills signs a six - month note at an annual interest rate of 129/6 . Bonita allows Mills to return any auger that it cannot* USE within 60 days and receive a full refund . Based on prior experience , Bonita Estimates that 5% of units sold to customers like Mills will be returned ( using the most likely outcome approach). Bonita's costs to recover the products will be immaterial , and the returned augers are expected to be resold at a profit . Prepare the journal Entry for Bonita on January 1 , 2017 . ( Credit account titles are automatically indented when the amount is Entered . Do not indent manually . If no entry is required , Select "NO Entry " for the account titles and enter O for the amounts .` Date Account Titles and Explanation Debit Credit January 1 , 2017 ( To record sales . ) January 1 , 2017 [ To record cost of goods sold . !)On August 10 , 2017 , Bonita Sells 12 mini - trenchers to a farm co-op in western Canada . Bonita provides a 4%'s volume discount on the mini - trenchers if the co-op has a 15% increase in purchases from Bonita compared to the prior year . Given the slowdown in the farm economy , Sales to the co-op have been flat , and it is highly uncertain that the benchmark will be met . Prepare the journal Entry for Bonita on August 10 , 2017 . ( Credit account titles are automatically indented when the amount is entered . Do not indent manually . If no entry is required , Select "NO Entry " for the account titles and Enter D for the amounts . ) Date Account Titles and Explanation Debit Credit August 10 , 2017 [ To record cash sales . ) August 10 , 2017 [ To record cost of goods sold . !"Bonita Sells three grain ,' hay divers to a local farmer at a total contract price of $ 3 3, 4 48 . In addition to the dryers , Bonita provides installation , which has a stand-alone Sales value of $ 740 per unit installed . The contract payment also includes a FEBE maintenance plan for the dryers for three years after installation . Bonita signs the contract on June 20 , 2017 , and receives a 20%/ down payment from the farmer . The divers are delivered and installed on October 1 , 2017 , and full payment is made to Bonita . Prepare the journal entries for Bonita in 2017 related to this arrangement as well as any adjusting journal Entries at its December year End . ( Credit account titles are automatically indented when the amount is entered . Do not indent manually* If no entry is required , Select "NO Entry " for the account titles and enter " for the amounts . Do not round intermediate calculations . Round answers to O decimal places , E .J. 5, 225.) Date Account Titles and Explanation Debit Credit JUNE 20 , 2017 [ To record collection of advance payment on contract .!" October 1 , 2017 [ To record installation of dryers . !"\fOn April 25, 2017 , Bonita ships ED augers to Farm Depot , a farm Supply dealer in Alberta , on consignment . By June 30 , 2017 , Farm Depot has sold 50 of the consigned augers at the listed price* of DEBS per unit . Farm Depot notifies Bonita of the sales , retains a $96 commission , and remits the cash due to Bonita . Prepare the journal entries for Bonita and Farm Depot for the consignment arrangement . ( Credit account titles are automatically indented when the amount is Entered . Do not indent manually . If no entry is required , Select "NO Entry" for the account titles and Enter O for the amounts . Round answers to O decimal places , & .J. 5, 225.) Date Account Titles and Explanation Debit Credit Entries for Bonita - the Consignor* June 30 , 2017 " To record Revenue from Consignment Sales . ] [ To record cost of god's sold .]Entries for Farm Depot - the ConsignEE* " To record consignment sales .! "To record cash remitted .*!*Problem 6-5 Bonita Ranch EA. Farm is a distributor of ranch and fanTI equipment. Its products include small tools, power equipment for trenchdigging and fencing, grain dryers, and ham winches. Most products are sold direct via its company catalogue and Internet site. However, given some of its specialty products, select fann implement stores carry Bonita's products. Pricing and cost information on three of Bonita's most popular products are as follows. Item Stand-Alone Selling Price (Cost) Minitrencher $ 2,664 ($1,430) Power fence hole auger 888 ($592) Graianay dryer 10,360 ($8,140) Respond to the requiremenm related to the following independent revenue arrangements for Bonita Ranch BL Farm. IFRS is a constraint
