Zing Cell Phone Company entered into the following transactions involving current liabilities during 2020 and 2021. 2020 Mar. 14 Purchased merchandise on credit from Ferris Inc. for $136,000. The terms were 1/10, n/30 (assume a perpetual inventory system). Apr. 14 Zing paid $23,000 cash and replaced the $113,000 remaining balance of the account payable to Ferris Inc. with a 3%, 60-day note payable. May 21 Borrowed $123,000 from Scotiabank by signing a 2.5%, 90-day note. ? Paid the note to Ferris Inc. at maturity. ? Paid the note to Scotiabank at maturity. Dec. 15 Borrowed $98,000 and signed a 3.25%, 120-day note with National Bank. Dec. 31 Recorded an adjusting entry for the accrual of interest on the note to National Bank. 2021 ? Paid the note to National Bank at maturity. Required: 1. Determine the maturity dates of the three notes just described. 2. Present journal entries for each of the preceding dates. (Use 365 days an year. Do not round intermediate calculations and round the final answers to 2 decimal places.)
Zing Cell Phone Company entered into the following transactions involving current liabilities during 2020 and 2021. 2020 Mar. 14 Purchased merchandise on credit from Ferris Inc. for $136,000. The terms were 1/10, n/30 (assume a perpetual inventory system). Apr. 14 Zing paid $23,000 cash and replaced the $113,000 remaining balance of the account payable to Ferris Inc. with a 3%, 60-day note payable. May 21 Borrowed $123,000 from Scotiabank by signing a 2.5%, 90-day note. ? Paid the note to Ferris Inc. at maturity. ? Paid the note to Scotiabank at maturity. Dec. 15 Borrowed $98,000 and signed a 3.25%, 120-day note with National Bank. Dec. 31 Recorded an adjusting entry for the accrual of interest on the note to National Bank. 2021 ? Paid the note to National Bank at maturity. Required: 1. Determine the maturity dates of the three notes just described. 2. Present journal entries for each of the preceding dates. (Use 365 days an year. Do not round intermediate calculations and round the final answers to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Zing Cell Phone Company entered into the following transactions involving current liabilities during 2020 and 2021.
| 2020 | ||
| Mar. | 14 | Purchased merchandise on credit from Ferris Inc. for $136,000. The terms were 1/10, n/30 (assume a perpetual inventory system). |
| Apr. | 14 | Zing paid $23,000 cash and replaced the $113,000 remaining balance of the account payable to Ferris Inc. with a 3%, 60-day note payable. |
| May | 21 | Borrowed $123,000 from Scotiabank by signing a 2.5%, 90-day note. |
| ? | Paid the note to Ferris Inc. at maturity. | |
| ? | Paid the note to Scotiabank at maturity. | |
| Dec. | 15 | Borrowed $98,000 and signed a 3.25%, 120-day note with National Bank. |
| Dec. | 31 | Recorded an |
| 2021 | ||
| ? | Paid the note to National Bank at maturity. |
Required:
1. Determine the maturity dates of the three notes just described.
2. Present
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