Reference no: EM132945347

Diego Company sells a wide range of goods through two retail stores operating in adjoining cities. Most purchases of goods for resale are on account. Occasionally, a short-term note payable is used to obtain cash for current use.

The following transactions were selected from those occurring during 2021:

• On January 10, 2021, purchased merchandise on credit, $36,300; the company uses a perpetual inventory system.
• On March 1, 2021, borrowed $215,000 cash from the bank and signed an interest-bearing note payable at the end of one year, with an annual interest rate of 5 percent payable at maturity.
• On April 5, 2021, sold merchandise on credit, $68,300; this amount included GST of $3,100 and PST of $4,900. The cost of sales represents 80 percent of the sales invoice.

Problem 1. Indicate the accounts affected and the amounts of the financial statement effects of these transactions. (Enter any decrease in account balances with a minus sign.)

Problem 2. What amount of cash is paid on the maturity date of the note?