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Flush Mate Co. wholesales bathroom fixtures. During the current fiscal year, Flush Mate Co. received the following notes: Date Face Amount Interest Rate Term 1.
Flush Mate Co. wholesales bathroom fixtures. During the current fiscal year, Flush Mate Co. received the following notes:
Date | Face Amount | Interest Rate | Term | |
1. | Mar. 6 | $79,600 | 6% | 45 days |
2. | Apr. 23 | 27,900 | 8 | 60 days |
3. | July 20 | 41,500 | 7 | 120 days |
4. | Sept. 6 | 51,500 | 8 | 90 days |
5. | Nov. 29 | 30,800 | 7 | 60 days |
6. | Dec. 30 | 69,300 | 5 | 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. |
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