Bonita Corp. sells idle machinery to Enyart Company on July 1, 2020, for $38,000. Bonita agrees to repurchase this equipment from Enyart on June 30, 2021, for a price of $39,900 (an imputed interest rate of 5%). (a) Your answer has been saved. See score details after the due date. Prepare the journal entry for Bonita for the transfer of the asset to Enyart on July 1, 2020. (Credit account titles are automatically indented when the 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.) Account Titles and Explanation Debit Credit Cash 38000 38000 Liability to Enyart Company
Bonita Corp. sells idle machinery to Enyart Company on July 1, 2020, for $38,000. Bonita agrees to repurchase this equipment from Enyart on June 30, 2021, for a price of $39,900 (an imputed interest rate of 5%). (a) Your answer has been saved. See score details after the due date. Prepare the journal entry for Bonita for the transfer of the asset to Enyart on July 1, 2020. (Credit account titles are automatically indented when the 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.) Account Titles and Explanation Debit Credit Cash 38000 38000 Liability to Enyart Company
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 11P
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Transcribed Image Text:(b)
Prepare any other necessary journal entries for Bonita in 2020. (Credit account titles are automatically indented when the 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.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31,
2020
Transcribed Image Text:Bonita Corp. sells idle machinery to Enyart Company on July 1, 2020, for $38,000. Bonita agrees to repurchase this equipment from
Enyart on June 30, 2021, for a price of $39,900 (an imputed interest rate of 5%).
(a)
Your answer has been saved. See score details after the due date.
Prepare the journal entry for Bonita for the transfer of the asset to Enyart on July 1, 2020. (Credit account titles are automatically
indented when the 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.)
Account Titles and Explanation
Debit
Credit
Cash
38000
Liability to Enyart Company
38000
eTextbook and Media
List of Accounts
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