for part 2 record entries for following 1. the purchase of merchandise on credit
ID: 2535435 • Letter: F
Question
for part 2
record entries for following
1. the purchase of merchandise on credit.
2.Record the payment of cash and a note written to exchange due date
3.Record the borrowing of cash with a 90-day against note
4.Record the payment of note with interest.
5.Record the payment of note with interest
6.Record the borrowing of cash with a 120-day note.
7.Record the accrued interest on note payable.
8.Record the payment of note with interest
Zing Cell Phone Company entered into the following transactions involving current liabilities during 2017 and 2018, 2017 Mar Apr. May 14 Purchased merchandise on credit from Ferns Inc. for $142,000. The terms were 1 /10, n/30 (assume a perpetual inventory system) 14 Zing paid $26,000 cash and replaced the 116,000 remaining balance of the account payable to Ferris Inc. with a 6%, 60-day note payable 21 Borrowed $126,000 from Scotia Bank by signing a 5.5%, 90-day note. ?Paid the note to Ferris Inc, at maturity Dec. Dec. ? Paid the note to Scotia Bank at maturity. 15 Borrowed $101,000 and signed a 6 25%, 120-day note with National Bank. 31 Recorded an adjusting entry for the accrual of interest on the note to National Bank. 2018 ? Paid the note to National Bank at maturity Required: 1. Determine the maturity dates of the three notes just described. a Bank National Banlk Maturity date 2. Present journal entries for each of the preceding dates. (Use 365 days an year. Rou your answers to 2 decimal places.) View transaction list Journal entry worksheet Record the purchase of merchandise on credit. Note: Enter debits before credits Record entry Clear entry View general journalExplanation / Answer
Req 1: Ferris Scotia National bank Maturity dates of notes: 13-Jun 19-Aug 14-Apr Req 2: Journal entries Date Accounts title and explanations Debit $ Credit $ 14-Mar Merchandise Inventory Dr. 142000 Accounts payable-Ferris 142000 14-Apr Accounts payable-Ferris Dr. 142000 Cash account 26000 Notes payable-Ferris 116000 21-May Cash Account Dr. 126000 Notes payable-Scotia 126000 13-Jun Notes payabale-Ferris Dr. 117,144 Interest expense (116000*6%*60/365) 116000 Cash account 1144 19-Aug Notes payable-Scotia Dr. 126000 Interest expense Dr. (126000*5.5%*90/365) 1709 Cash account 127709 15-Dec Cash Account Dr. 101000 Notes payable-National bank 101000 31-Dec Interest expense Dr. (101000*6.25%*16/365) 277 Interest payable 277 April 14 2018 Notes payable-National bank Dr. 101000 Interest payable Dr. 277 Interest expense Dr. (101000*6.25%*104/365) 1799 Cash account 103076
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