Bonita Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four newtrucks on April 1, 2025. The terms of acquisition for each truck are described below.1.2.3.4.Truck #1 has a list price of $29,550 and is acquired for a cash payment of $27,383.Truck #2 has a list price of $31,520 and is acquired for a down payment of $3,940 cash and a zero-interest-bearing note witha face amount of $27,580. The note is due April 1, 2026. Bonita would normally have to pay interest at a rate of 9% for such aborrowing, and the dealership has a borrowing rate of 8%.Truck #3 has a list price of $31,520. It is acquired in exchange for a computer system that Bonita carries in inventory. Thecomputer system cost $23,640 and is normally sold by Bonita for $29,944. Bonita uses a perpetual inventory system.Truck #4 has a list price of $12,980. It is acquired in exchange for 920 shares of common stock in Bonita Corporation. Thestock has a par value per share of $10 and a market price of $13 per share.Prepare the appropriate journal entries for the above transactions for Bonita Corporation. (Round present value factors to 5 decimalplaces, e.g. 0.52587 and final answers to 2 decimal places, eg. 52.75. Credit account titles are automatically indented when amount is entered.Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries beforecredit entries.)

Solution:-In the given question, Bonito Corporation a retail computer store, to improve its delivery…

Answered: Bonita Corporation operates a retail…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Kk.303.

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