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

$75,000

60 days

4%

2.

Apr. 7

40,000

45 days

6%

3.

Aug. 12

36,000

120 days

5%

4.

Oct. 22

27,000

30 days

8%

5.

Nov. 19

48,000

90 days

3%

6.

Dec. 15

72,000

45 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 ACCOUNTSWater 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