Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Bingo Bongo Cell Phone Company entered into the following transactions involving current liabilities during 2023 and 2024: 2023 Mar. 14 Purchased merchandise on credit from

image text in transcribed
image text in transcribed
Bingo Bongo Cell Phone Company entered into the following transactions involving current liabilities during 2023 and 2024: 2023 Mar. 14 Purchased merchandise on credit from Faris Inc. for $150,000. The terms were 1/10,n/30 (assume a perpetual inventory system). Apr. 14 Bingo Bongo paid $30,000 cash and replaced the $120,000 remaining balance of the account payable to Faris Inc. with a 5%,60-day note payable. May 21 Borrowed $130,000 from Techbank by signing a 4.5%,90-day note. ? Paid the note to Faris Inc. at maturity. ? Paid the note to Techbank at maturity. Dec. 15 Borrowed $105,000 and signed a 5.25\%, 120-day note with Nation Bank. Dec. 31 Recorded an adjusting entry for the accrual of interest on the note to Nation Bank. 2024 ? Paid the note to Nation Bank at maturity. Required: 1. Determine the maturity dates of the three notes described above. 2. Present journal entries for each of the above dates. (Do not round intermediate calculations and round the final answers to 2 decimal places.) Intangible assets do not include Trademarks Patornts Goodwill Copyrights

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions