5. Zing Cell Phone Company entered into the following transactions involving current liabilities during 2020 and 2021. 2 1 Purchased merchandise on credit from Ferris Inc. 4 for $138,000. The terms were 1/10, n/30 (assume a perpetual inventory system). M ar. A 1 Zing paid $24,000 cash and replaced the 4 $114,000 remaining balance of the account payable to Ferris Inc. with a 5%, 60-day note payable. pr. M 2 Borrowed $124,000 from Scotiabank by signing a 1 4.5%, 90-day note. ? Paid the note to Ferris Inc. at maturity. ? Paid the note to Scotiabank at maturity. ay 1 Borrowed $99,000 and signed a 5.25%, 120-day 5 note with National Bank. ес 3 Recorded an adjusting entry for the accrual of 1 interest on the note to National Bank. ес 1 ? Paid the note to National Bank at maturity. Required: 1. Determine the maturity dates of the three notes just described. NON 202
5. Zing Cell Phone Company entered into the following transactions involving current liabilities during 2020 and 2021. 2 1 Purchased merchandise on credit from Ferris Inc. 4 for $138,000. The terms were 1/10, n/30 (assume a perpetual inventory system). M ar. A 1 Zing paid $24,000 cash and replaced the 4 $114,000 remaining balance of the account payable to Ferris Inc. with a 5%, 60-day note payable. pr. M 2 Borrowed $124,000 from Scotiabank by signing a 1 4.5%, 90-day note. ? Paid the note to Ferris Inc. at maturity. ? Paid the note to Scotiabank at maturity. ay 1 Borrowed $99,000 and signed a 5.25%, 120-day 5 note with National Bank. ес 3 Recorded an adjusting entry for the accrual of 1 interest on the note to National Bank. ес 1 ? Paid the note to National Bank at maturity. Required: 1. Determine the maturity dates of the three notes just described. NON 202
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:11:38 AM
... a 4G YE 26%
E Assignment 2.docx
5. Zing Cell Phone Company entered into the following transactions
involving current liabilities during 2020 and 2021.
2
1 Purchased merchandise on credit from Ferris Inc.
4 for $138,000. The terms
were 1/10, n/30 (assume a perpetual inventory
system).
M
ar.
1 Zing paid $24,000 cash and replaced the
4 $114,000 remaining balance of the account
payable to Feris Inc. with a 5%, 60-day note
payable.
2 Borrowed $124,000 from Scotiabank by signing a
1 4.5%, 90-day note.
? Paid the note to Ferris Inc. at maturity.
Paid the note to Scotiabank at maturity.
A
pr.
M
ay
D
1 Borrowed $99,000 and signed a 5.25%, 120-day
ес
note with National Bank.
D
3 Recorded an adjusting entry for the accrual of
ec
interest on the note to National Bank.
1
? Paid the note to National Bank at maturity.
Required:
1. Determine the maturity dates of the three notes just described.
6. Okanagan Refrigeration manufactures and markets commercial
refrigeration systems for food trucks and specialized transport trucks. It was
disclosed in notes to the company's financial statements that estimated
warranty costs are accrued at the time products are sold. Assume that in 2020
warranty costs are estimated at $334,000 and that the related warranty work
was actually paid for during 2021.
Required:
Prepare journal entry to show the effect on financial statements due to
warranties in 2020 and 2021.
3/4
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