Flush Mate Co wholesales bathroom fixtures During the current fiscal year, Flush Mate Co received the following notes Date Face Amount Term Interest Rate 1 Mar 6 $80,000 45 days 5 2 Apr 23 24,000 60 days 9 3 July 20 42,000 120 days 6 4 Sept 6 54,000 90 days 7 5 Nov 29 27,000 60 days 6 6 Dec 30 72,000 30 days 5 Required 1 Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number 2 Journalize the entry to record the dishonor of Note (3) on its due date Refer to the Chart of Accounts for exact wording of account titles 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 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 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 Common Stock 311 Retained Earnings 312 Dividends 313 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

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 30, 2024

Flush Mate Co. wholesales bathroom fixtures. During the current fiscal year, Flush Mate Co. received the following notes: Date Face Amount Term Interest Rate 1.

Flush Mate Co. wholesales bathroom fixtures. During the current fiscal year, Flush Mate Co. received the following notes:

	Date	Face Amount	Term	Interest Rate
1.	Mar. 6	$80,000	45 days	5%
2.	Apr. 23	24,000	60 days	9%
3.	July 20	42,000	120 days	6%
4.	Sept. 6	54,000	90 days	7%
5.	Nov. 29	27,000	60 days	6%
6.	Dec. 30	72,000	30 days	5%

Required:

Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number.

Journalize the entry to record the dishonor of Note (3) on its due date. Refer to the Chart of Accounts for exact wording of account titles.

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.

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.

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	Common Stock
311	Retained Earnings
312	Dividends
313	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