Reference no: EM132719256

Transactions with current notes payable Zing Cell

Phone Company entered into the following transactions involving current liabilities during 2020 and 2021:

2020

1. Mar. 14 Purchased merchandise on credit from Ferris Inc. for $150,000. The terms were 1/10, n/30 (assume a perpetual inventory system).
2. Apr. 14 Zing paid $30,000 cash and replaced the $120,000 remaining balance of the account payable to Ferris Inc. with a 5%, 60-day note payable.
3. May 21 Borrowed $130,000 from Scotiabank by signing a 4.5%, 90-day note. Paid the note to Ferris Inc. at maturity.
4. Paid the note to Scotiabank at maturity.
5. Dec. 15 Borrowed $105,000 and signed a 5.25%, 120-day note with National Bank.
6. 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.