Flush Mate Co. wholesales bathroom fixtures. During the current fiscal year, Flu
ID: 2571250 • Letter: F
Question
Flush Mate Co. wholesales bathroom fixtures. During the current fiscal year, Flush Mate Co. received the following notes:
30 days
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. (Note: Round each interest computation to the whole dollar.)
June 22
Apr. 21
Apr. 20
June 9
Apr. 30
July 22
June 23
June 22
July 25
June 30
Dec. 5
Nov. 20
July 1
Nov. 17
July 31
Dec. 4
Dec. 5
Oct. 31
Dec. 6
Dec. 1
Sep. 29
Jan. 29
Jan. 28
Nov. 28
Nov. 17
Nov. 28
Jan. 30
Jan. 29
Nov. 17
Jan. 28
2. Journalize the entry to record the dishonor
A note receivable is dishonored when the maker of the note fails to pay the note on the due date.
of Note (3) on its due date. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. Round your answer to the nearest whole dollar.
PAGE 1
JOURNAL
ACCOUNTING EQUATION
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2
3
Solution
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2
3
Points:
3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. Round your answer to the nearest whole dollar.
PAGE 1
JOURNAL
ACCOUNTING EQUATION
1
2
Solution
1
2
Date Face Amount Interest Rate Term 1. Mar. 6 $84,500 6% 45 days 2. Apr. 23 21,700 9% 60 days 3. July 20 43,900 5% 120 days 4. Sept. 6 51,500 6% 90 days 5. Nov. 29 30,600 5% 60 days 6. Dec. 30 71,300 6%30 days
Explanation / Answer
note Date interest 1 20-Apr 634 2 22-Jun 326 3 17-Nov 732 4 5-Dec 773 5 28-Jan 255 6 29-Jan 357 journal entry to record dishonour accounting titles & Explanations Debit Credit Account receivable 44,632 interest income (43900*5%*120/360) 732 notes receivable 43,900 journal entry to accrue interest on note 5 interest receivable 136 interest income (30,600*5%*32/360 136 interest receivable 5 interest income (30,600*6%*1/360) 5