Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 $132,000. The terms were 1/10, n/30 (assume a perpetual inventory system). Apr. 14 Zing paid $21,eee cash and replaced the $111,000 remaining balance of the account payable to Ferris Inc. with a 5%, 60-day note payable. May 21 Borrowed $121,000 from Scotiabank by signing a 4.5%, 90-day note. ? Paid the note to Ferris Inc. at maturity. ? Paid the note to scotiabank at maturity. Dec. 15 Borrowed 596,000 and signed a 5.25%, 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. Ferris Inc. Scotiabank National Bank Maturity date 2. Present Journal entries for each of the preceding dates. (Use 365 days an year. Do not round Intermediate calculations ar the final answers to 2 decimal places.) Superior Skateboard Company, located in Ontario, is preparing adjusting entries at December 31, 2020. An analysis reveals the following a. During December, Superior sold 7,300 skateboards that carry a 60-day warranty, The skateboard sales totalled $398,000. The company expects 9% of the skateboards will need repair under warranty and it estimates that the average repair cost per unit will be $46. b. A disgruntled employee is suing the company, Legal advisers believe that it is probable that Superior will have to pay damages, the amount of which cannot be reasonably estimated c. Superior needs to record previously unrecorded cash sales of $2,180,000 (cost of soles 70%) plus applicable HST. d. Superior recognizes that $103,000 of $168.000 received in advance for skateboards has now been earned. Required: Prepare any required adjusting entries at December 31, 2020, for each of the above (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) View transaction list Journal entry worksheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Guide To Hipaa Auditing Practical Tools And Tips To Ensure Compliance

Authors: Margret Amatayakul

1st Edition

1578393582, 978-1578393589

More Books

Students also viewed these Accounting questions

Question

What type of reports are the basis for all other reports?

Answered: 1 week ago