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 $92,000, 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.

(a)

Your answer has been saved. See score details after the due date.

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

eTextbook and Media

Attempts: 1 of 1 used

(b)

What amount will reported for interest revenue for Bonitas income statements for the years ended December 31, 2021, 2022, and 2023? Assuming Bonita prepares a multiple-step income statement, how will interest revenue be classified?

BONITA FARM EQUIPMENT Partial Statement of Income Quarter Ended December 31Year Ended December 31December 31
		2023		2022		2021
Operating ExpensesSales RevenuesCost of Goods SoldOther ExpensesOther Revenues
Interest revenue		$		$		$

eTextbook and Media

Save for Later

Last saved 6 minutes ago.

Saved work will be auto-submitted on the due date.

Attempts: 0 of 1 used

Submit Answer

(c)

The parts of this question must be completed in order. This part will be available when you complete the part above.