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
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 $168,000. The terms were 1/10, n/30 (assume a perpetual inventory system). |
Apr. | 14 | Zing paid $39,000 cash and replaced the $129,000 remaining balance of the account payable to Ferris Inc. with a 5%, 60-day note payable. |
May | 21 | Borrowed $139,000 from Scotiabank by signing a 4.0%, 90-day note. |
? | Paid the note to Ferris Inc. at maturity. | |
? | Paid the note to Scotiabank at maturity. | |
Dec. | 15 | Borrowed $114,000 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.
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.)
next question -
Johnson Inc.s non-strategic investment portfolio at December 31, 2019, consisted of the following:
Debt and Equity Investments* | Cost | Fair Value | |||||||
11,300 Xavier Corp. common shares | $ | 184,755 | $ | 163,850 | |||||
1,900 Young Inc. common shares | 98,800 | 94,240 | |||||||
133,000 Zed Corp. common shares | 43,900 | 39,500 | |||||||
*The fair value adjustments were recorded on December 31, 2019. Johnson had no other debt and equity investments at December 31, 2019, other than those shown above. During 2020, Johnson engaged in the following transactions:
2020 | |||
Jan. | 17 | Sold 1,400 common shares of Young Inc. for $67,200. Johnson Inc. planned to hold these shares for less than one year. | |
Mar. | 3 | Purchased 6,300 common shares of Allen Corp. for $378,000. The shares represent a 30% ownership in Allen Corp. | |
June | 7 | Received dividends from Allen Corp. at the rate of $3.80 per share. | |
Aug. | 14 | Sold the remaining Young Inc. shares at $32.80. | |
Nov. | 28 | Purchased a 5% ownership in Davis Corp. by acquiring 11,300 common shares at a total of $100,570. Johnson Inc. will sell these shares in six to nine months. | |
Dec. | 30 | Sold 11,300 shares of Xavier Corporation for $180,800. | |
Dec. | 31 | Allen Corp. announced a net profit of $286,500 for the year. |
Required: Journalize the above transactions.
Analysis Component: Assume the Allen Corp. shares were sold on January 16, 2021, for $377,000. Calculate the investment income or loss and select whether it is unrealized/realized?
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