Zing Cell Phone Company entered into the following transactions involving current liabilities during 2020 and 2021. 2020 Mar.14Purchased merchandise on credit from Ferris Inc. for $136,000. The termswere 1/10, n/30 (assume a perpetual inventory system).Apr.14Zing paid $23,000 cash and replaced the $113,000 remaining balance of the accountpayable to Ferris Inc. with a 3%, 60-day note payable.May21Borrowed $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.15Borrowed $98,000 and signed a 3.25%, 120-day note with National Bank.Dec.31Recorded 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.)

Journal Entries - Journal Entries are the recording of transactions of the organization. It is…

Answered: Zing Cell Phone Company entered into…

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 24E: Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January...

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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.)

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