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	$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

	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.(Note: Round each interest computation to the whole dollar.)
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.
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.
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 exact wording of account titles. Assume a 360-day year when calculating interest. Round your answer to the nearest whole dollar.

2

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Chart of Accounts

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

	EQUITY
310	Owner, Capital
311	Owner, Drawing
312	Income Summary

	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

none

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Starting Question

Shaded cells have feedback.

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.)

Note	Due Date	Interest Due at Maturity
1.	selector 1Apr. 20 June 22 Apr. 21 Apr. 20 June 9 Apr. 30
2.	selector 2June 22 July 22 June 23 June 22 July 25 June 30
3.	selector 3Nov. 17 Dec. 5 Nov. 20 July 1 Nov. 17 July 31
4.	selector 4Dec. 5 Dec. 4 Dec. 5 Oct. 31 Dec. 6 Dec. 1
5.	selector 5Jan. 28 Sep. 29 Jan. 29 Jan. 28 Nov. 28 Nov. 17
6.	selector 6Jan. 29 Nov. 28 Jan. 30 Jan. 29 Nov. 17 Jan. 28

Points:

12 / 12

Feedback

Check My Work

Count the number of days in each month until the total number of days is reached for the term of the note and this will be the due date. Interest is not charged on the first day of the note.

Explanation

none

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Journal

Shaded cells have feedback.

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.How does grading work?

The grader is designed to give you the best score possible, even when you skip lines or enter them out of order. It does this by taking every line you have entered and comparing it to every line in the answer. When it finds the line that gives you the best score, it considers that a match.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

Score: 37/37

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3

Solution

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3

Points:

7 / 7

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.

How does grading work?

The grader is designed to give you the best score possible, even when you skip lines or enter them out of order. It does this by taking every line you have entered and comparing it to every line in the answer. When it finds the line that gives you the best score, it considers that a match.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

Score: 21/25

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2

Solution

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2

Points:

4.2 / 5

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 exact wording of account titles. Assume a 360-day year when calculating interest. Round your answer to the nearest whole dollar.

All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

Score: 2/99

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6
7
8

Solution

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6
7
8

Points:

0.36 / 18

Feedback

Check My Work

2.

Typically, the maker of a dishonored note fails to pay the note on the due date. A company that holds a dishonored note transfers the face amount of the note plus any interest due back to an accounts receivable account. Interest revenue is not dependent on receiving the interest at this point.

3.

(Note 5) Calculate the number of days of interest that accrues between November 29 and December 31. Remember interest is not charged on the first day of the note. Use this to calculate:

(a) Interest rate x face amount = annual interest.

(b) Annual interest x (number of days to end of year 360 days) = interest on note to the end of the year

Two accounts related to interest are used for the transaction.

(Note 6) Calculate the number of days of interest that accrues between December 30 and December 31. Remember interest is not charged on the first day of the note. Use this to calculate:

(a) Interest rate x face amount = annual interest.

(b) Annual interest x (number of days to end of year 360 days) = interest on note to the end of the year

Two accounts related to interest are used for the transaction.

4.

Cash received will include the maturity value of the note.

Explanation

1

Need help with part 3 and 4 please.