The following selected transactions were completed by Fasteners Inc. Co$.,$ a supplier of buttons and zippers for clothing:

$20Y3$

Nov. $21$ Received from McKenna Outer Wear Co$.,$ on account, a $$54,000,60-$day, $7\%$ note dated November $21$

in settlement of a past due account.

Dec. $31$ Recorded an adjusting entry for accrued interest on the note of November $21.$

$20Y4$

Jan. $20$ Received payment of note and interest from McKenna Outer Wear Co$.$

Required:

Journalize the entries to record the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not

use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit

entry when a credit amount is entered. If no entry is required, simply skip to the next transaction. Assume a $360-$day year when calculating

interest.

CHART OF ACCOUNTS

Fasteners Inc. Co$.$

General Ledger

ASSETS

$110$ Cash

$111$ Petty Cash

$121$ Accounts Receivable$-$McKenna Outer Wear Co$.$

$129$ 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

$310$ Owner, Capital

$311$ Owner, Drawing

$312$ 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

ASSETS

$110$ Cash

$111$ Petty Cash

$121$ Accounts Receivable$-$McKenna Outer Wear Co$.$

$129$ 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

$310$ Owner, Capital

$311$ Owner, Drawing

$312$ 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 required, simply skip to the next transaction. Assume a $360-$day year when calculating interest.

required, simply skip to the next transaction. Assume a $360-$day year when calculating interest.