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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 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 | $75,300 | 45 days | 5% |
2. | Apr. 23 | 24,500 | 60 days | 9% |
3. | July 20 | 41,600 | 120 days | 5% |
4. | Sept. 6 | 55,400 | 90 days | 6% |
5. | Nov. 29 | 24,100 | 60 days | 7% |
6. | Dec. 30 | 67,400 | 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 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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