Presented below is information related to Bonita Company. Secure https://edugen.

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Presented below is information related to Bonita Company.

Secure https://edugen.wileyplus.com/edugen/shared/assignment/test/print.uni Presented below is information related to Bonita Company. 1. On July 6, Bonita Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is: Land Buildings Equipment Total $380,000 1,140,000 760,000 $2,280,000 Bonita Company gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market price of $208 per share on the date of the purchase of the property. 2. Bonita Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building. (Prepare consolidated entry for all transactions below.) Repairs to building $98,580 Construction of bases for equipment to be installed later 129,120 Driveways and parking lots 123,200 Remodeling of office space in building, including new partitions and walls 160,440 Special assessment by city on land 19,390 3. On December 20, the company paid cash for equipment, $260,100, subject to a 2% cash discount, and freight on equipment of $10,790. Prepare entries on the books of Bonita Company for these transactions. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971. 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 o for the amounts.) No. Account Titles and Explanation Debit Credit 1. 2.

Explanation / Answer

BONITA COMPANY Event Account Title Debit Credit 1 Land 380000 Building 1140000 Equipment 760000 Goodwill 320000 Common Stock 1250000 Additional pid-in-capital - Common stock 1350000 (Acquisition of assets of Doonesbury Company) 2 Building 98580 Equipment 129120 Land Development 123200 Office Furniture and Fixtures 160440 Land 19390 Cash 530730 (Cash paid for various items) 3 Equipment 270890 Cash 270890 (Cash paid for equipment and freight charges )

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