On November 1, 2021, Bonita Farm Equipment sold a harvesting machine to Stead Industries. Instead of a cash payment, Stead Industries gave Bonita Farm Equipment
On November 1, 2021, Bonita Farm Equipment sold a harvesting machine to Stead Industries. Instead of a cash payment, Stead Industries gave Bonita Farm Equipment a $99,000, two-year, 6.0% note. The note required interest to be paid quarterly starting February 1, 2022. Bonita Farm Equipments financial statements are prepared on a calendar-year basis. The following instructions refer only to this note receivable.
Prepare journal entries for Bonita Farm Equipment for the full term of the note. Include the sale of the equipment on Nov. 1, 2021, receipt of interest, adjusting entries required on December 31, 2021 and 2022, and the collection of the note on November 1, 2023. Ignore Cost of Goods Sold. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
| Date | Account Titles and Explanation | Debit | Credit |
| Nov. 1, 2021Dec. 31, 2021Feb. 1, 2022May 1, 2022Aug. 1, 2022Nov. 1, 2022Dec. 31, 2022Feb. 1, 2023May 1, 2023Aug. 1, 2023Nov. 1, 2023 | |||
| Nov. 1, 2021Dec. 31, 2021Feb. 1, 2022May 1, 2022Aug. 1, 2022Nov. 1, 2022Dec. 31, 2022Feb. 1, 2023May 1, 2023Aug. 1, 2023Nov. 1, 2023 | |||
| Nov. 1, 2021Dec. 31, 2021Feb. 1, 2022May 1, 2022Aug. 1, 2022Nov. 1, 2022Dec. 31, 2022Feb. 1, 2023May 1, 2023Aug. 1, 2023Nov. 1, 2023 | |||
| Nov. 1, 2021Dec. 31, 2021Feb. 1, 2022May 1, 2022Aug. 1, 2022Nov. 1, 2022Dec. 31, 2022Feb. 1, 2023May 1, 2023Aug. 1, 2023Nov. 1, 2023 | |||
| Nov. 1, 2021Dec. 31, 2021Feb. 1, 2022May 1, 2022Aug. 1, 2022Nov. 1, 2022Dec. 31, 2022Feb. 1, 2023May 1, 2023Aug. 1, 2023Nov. 1, 2023 | |||
| Nov. 1, 2021Dec. 31, 2021Feb. 1, 2022May 1, 2022Aug. 1, 2022Nov. 1, 2022Dec. 31, 2022Feb. 1, 2023May 1, 2023Aug. 1, 2023Nov. 1, 2023 | |||
| Nov. 1, 2021Dec. 31, 2021Feb. 1, 2022May 1, 2022Aug. 1, 2022Nov. 1, 2022Dec. 31, 2022Feb. 1, 2023May 1, 2023Aug. 1, 2023Nov. 1, 2023 | |||
| Nov. 1, 2021Dec. 31, 2021Feb. 1, 2022May 1, 2022Aug. 1, 2022Nov. 1, 2022Dec. 31, 2022Feb. 1, 2023May 1, 2023Aug. 1, 2023Nov. 1, 2023 | |||
| Nov. 1, 2021Dec. 31, 2021Feb. 1, 2022May 1, 2022Aug. 1, 2022Nov. 1, 2022Dec. 31, 2022Feb. 1, 2023May 1, 2023Aug. 1, 2023Nov. 1, 2023 | |||
| Nov. 1, 2021Dec. 31, 2021Feb. 1, 2022May 1, 2022Aug. 1, 2022Nov. 1, 2022Dec. 31, 2022Feb. 1, 2023May 1, 2023Aug. 1, 2023Nov. 1, 2023 | |||
| Nov. 1, 2021Dec. 31, 2021Feb. 1, 2022May 1, 2022Aug. 1, 2022Nov. 1, 2022Dec. 31, 2022Feb. 1, 2023May 1, 2023Aug. 1, 2023Nov. 1, 2023 | |||
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Authors: Anne Britton, Chris Waterston
4th Edition
0273703609, 978-0273703600
