Instructions Water Closet Co. wholesales bathroom fixtures. During the current year ending December 31, Water Closet received the following notes: Interest Rate 4% 9% 1. 2. 3. 4. 5. 6. Date Mar. 6 Apr. 7 Aug. 12 Oct. 22 Nov. 19 Dec. 15 Face Amount $75,000 40,000 36,000 2 7,000 48,000 72,000 Term 60 days 45 days 120 days 30 days 90 days 45 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. (Note: Round each interest computation to the nearest cent.) 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. Assume a 360-day year. (Note: Round each interest computation to the nearest cent.) 4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January and February. Refer to the Chart of Accounts for exact wording of account titles. Details of notes receivable and related entries Instructions Chart of Accounts First Question Journal First Question Shaded cells have feedback. X 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. (Note: Round each interest computation to the nearest cent.) Note Due Date 1. 2. S S Interest Due at Maturity 500.00 450.00 3. May 5 V May 22 V Dec. 10 V Nov. 21 V Feb. 17V Jan. 29 135.00 5. S S $ 6. Points: 9/ 12 Journal Shaded cells have feedback. X 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. Round each interest computation to the nearest cent How does grading work? PAGE 1 JOURNAL Score: 33/37 DATE DESCRIPTION POST. REF. DEBIT CREDIT ACCOUNTING FOLIATION ASSETS ABILITIES EQUITY Dec. 10 Accounts Receivable Notes Receivable 36,000.00 Interest Revenue Points: 6.24/7 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. Round each interest computation to the nearest cent. How does grading work? PAGE 1 JOURNAL Score: 21/25 DATE DESCRIPTION POST. REF. DEBIT CREDIT ACCOUNTING FOLATION ASSETS LABIUTIES EQUITY Dec 31 Interest Receivable Interest Revenue Points: 4.2/5 4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January and February. Refer to the Chart of Accounts for exact wording of account titles. Round each interest computation to the nearest cent. How does grading work? PAGE 1 JOURNAL Score: 87/99 DATE DESCRIPTION POST. REF. ACCOUNTING FOLLATION ASSETS LABIUTIES EQUITY DEBIT CREDIT Jan. 29 Cash Notes Receivable 72,000.00 Interest Receivable Interest Revenue Feb. 17 Cash Notes Receivable 48,000.00 Interest Receivable Interest Revenue
