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

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

	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:

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

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

Solution

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