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	$82,000	45 days	6%
2.	Apr. 23	28,900	60 days	10%
3.	July 20	41,400	120 days	7%
4.	Sept. 6	49,700	90 days	7%
5.	Nov. 29	26,300	60 days	5%
6.	Dec. 30	72,000	30 days	6%

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

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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	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

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Starting Question

1. Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number. (Note: Round each interest computation to the whole dollar.)

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

Points:

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Explanation

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Journal

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.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3

Solution

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
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.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

Solution

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

Points:

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.

PAGE 1

JOURNAL

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

Solution

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

Points:

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Explanation