Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Described below are certain transactions of Bonita Corporation. The company uses the periodic inventory system. 1. On February 2, the corporation purchased goods from Martin

Described below are certain transactions of Bonita Corporation. The company uses the periodic inventory system.

1. On February 2, the corporation purchased goods from Martin Company for $74,800 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. On April 1, the corporation bought a truck for $54,000 from General Motors Company, paying $4,000 in cash and signing a one-year, 10% note for the balance of the purchase price.
3. On May 1, the corporation borrowed $80,200 from Chicago National Bank by signing a $89,320 zero-interest-bearing note due one year from May 1.
4. On August 1, the board of directors declared a $292,000 cash dividend that was payable on September 10 to stockholders of record on August 31.\

image text in transcribed

image text in transcribed

Make all the jounal entries necessary to record the transactions above using appropriate dates.(If no entry is required, select 'No Entry for the account titles and enter O for the ornounts.Credit account titles are automaticoly indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit 73301 Accounts Payable Accounts Payable Purchase Discounts Lost February 26 73304 1496 Cash 74800 April 1 Trucks Cash 4000 Notes Payable May 1 Cash Notes Payable Discount on Notes Payable August 1 #11 Retained Earnings 292000 Dividends Payable 292000 September 10Dlvidends Payable Cash onita orpor ations ear-end ecember 3 ssuming "U dd ustr er rres re at ve to the ransact ons ab e have b er eorced pret are arry so ustin ourna er tr es (oncernin ter es h are necessary to present a r ranca s temen s t reained seact No Entry for the account titles and enter far theamonts Creit account titiles ane automaticaly ndented when amountsentered Donot indontmonuolk Rerord journai entries ethe order presented in the problem 1 e amor za lon U discounts ecer o sume stratU't y sui no n ry 15 No. Account Tities and Explanation Na Entry 2. Dlviderds Parable Cash 292000 3 Interest Experse 830 Interest Payable 4 No Entry No Entry

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Evaluating The Effectiveness On Internal Audit Departments

Authors: W. Steve Albrecht, Keith R. Howe, Dennis R. Schueler, Kevin D. Stocks

1st Edition

089413177X, 978-0894131776

More Books

Students also viewed these Accounting questions