50.1K

Verified Solution

Link Copied!

Flush Mate Co. wholesales bathroom fixtures. During the current fiscal year, Flush Mate Co. received the following notes: 1. 2. 3. 4. 5. Date Mar. 6 Apr. 23 July 20 Sept. 6 Nov. 29 6. Dec. 30 Face Amount Interest Rate $79,600 27,900 41,500 51,500 30,800 69,300 6% 8 7 8 7 5 Term 45 days 60 days 120 days 90 days 60 days 30 days Required: 1. Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number. Assume a 360-day year when calculating interest. Round each interest computation to the whole dollar. 2. Journalize the entry to record the dishonor of Note (3) on its due date.* 3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31.* 4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January.* *Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Assume a 360-day year when calculating interest. Round your answers to the nearest whole dollar.

CHART OF ACCOUNTS Flush Mate Co. General Ledger ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 129 Allowance for Doubtful Accounts 131 Interest Receivable 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 524 Repairs Expense 529 Selling Expenses 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 insurance Expense 534 Office Supplies Expense 535 Store Supplies Expense 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 539 Miscellaneous Expense 710 Interest Expense EQUITY 310 Owner, Capital 311 Owner, Drawing Flush Mate Co, wholesales bathroom fixtures. During the current fiscal year, Flush Mate Co, received the following notes: Required: 1. Determine for each note (a) the due date and (b) the amount of interest due at mafunty, identifying each note by number. Assume a s60-day year when calculating interest. Round each interest computation to the whole dollar. 2. Joumalize the entry to record the dishonor of Note (3) on its due date. 3. Joumalize the adjusting eniry to record the accrued interest on Notes (5) and (6) on December 31." 4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January. * Refer to the chart of accounts for the exact wording of the account tites. CNOW journals do not use lines for journal explanations. Every line on a joumal page is used for debut or credit entries. CNOW joumals will automatically indent a crecit entry when a credit amount is entered. Assume a 360 -day year when calculating interest. Round your answers to the nearest whole dollar. 2. Joumalize the entry to record the dishonor of Note (3) on its due date. Refer fo the chart of accounts for the exact wording of the account fities. Crvow joumals do not use Anes for joumal explanations. Every line on a joumal page is used for debit or credit entries. CNOW joumals wif automaticaly indont a credit entry when a credit amount is entered. Assume a 360-day year when calculating inferest. Round your answers to the nearest whole dollar. 1. Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number. Assume a 360-day year when calculating interest. Round each interest computation to the whole dollar. 3. Joumalze the adfusting entry to record the accrued interest on Notes (5) and (6) on December 31 . Refer to the chart of accounts for the exact wording of the sccount Dites. CNOW journals do not use lines for joumal explanations. Every line on a journal page is used for debit or credit entries. CNOW joumals will aufomaticaly indent a crecit entry when a credit amount is entored. Assume a 360 -day year when caiculating interest. Found your answers to the nearest whole dollar: 4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January. Refer fo the chart of accounts for the exact wording of the account tilles. CNOW joumals do not use lines for joumal explanations. Every fine on a joumal page is used for debvt or credit entries. CNOW joumals will automatically indent a credit enty when a credit amount is entered. Assume a 360-day year when calculating interest. Found your answers to the nearest whole dollar

Answer & Explanation Solved by verified expert

See Answer