Water Closet Co$.$ wholesales bathroom fixtures. During the current year ending December $31,$ Water Closet received the following notes:

Date

Face Amount

Term

Interest Rate

$1.$ Mar. $6$ $$75,00060$ days $4\%$

$2.$ Apr. $740,00045$ days $6\%$

$3.$ Aug. $1236,000120$ days $5\%$

$4.$ Oct. $2227,00030$ days $8\%$

$5.$ Nov. $1948,00090$ days $3\%$

$6.$ Dec. $1572,00045$ 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. Assume a $360-$day year.

$2.$ Journalize the entry to record the dishonor of Note $(3)$ on its due date.

$3.$ Journalize the adjusting entry to record the accrued interest on Notes $(5)$ and $(6)$ on December $31.$ Assume a $360-$day year.

$4.$ Journalize the entries to record the receipt of the amounts due on Notes $(5)$ and $(6)$ in January and February.CHART OF ACCOUNTS

Water Closet 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

REVENUE

$410$ Sales

$610$ Interest Revenue

EXPENSES

$510$ Cost of Goods 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 $1.$ 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

Due Date

Interest Due at Maturity

$1.$

$

$2.$

$

$3.$

$

$4.$

$

$5.$

$

$6.$

$ $2.$ Journalize the entry to record the dishonor of Note $(3)$ on its due date.

General Journal Instructions

PAGE $1$

JOURNALACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

$3.$ Journalize the adjusting entry to record the accrued interest on Notes $(5)$ and $(6)$ on December $31.$ Assume a $360-$day year.

General Journal Instructions

PAGE $1$

JOURNALACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

$4.$ Journalize the entries to record the receipt of the amounts due on Notes $(5)$ and $(6)$ in January and February.

General Journal Instructions

PAGE $1$

JOURNALACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY