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 4% 80 days 45 days 40,000 2. 3 6% Apr. 7 Aug. 12 120 days 5% 36,000 27,000 4. Oct. 22 30 days 8% 5. Nov. 19 48,000 90 days 3% 6. Dec. 15 72.000 45 days 5% Required: 1. Determine for each noto (a) the due date and (b) the amount of interest due at maturity. Identifying each note by number. Assume a 360-day year. 2 Journaize the entry to record the dishonor of Note (3) on its due date. Refer to the Chart of Accounts for exact wording of account es 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 billes. Assume a 360-day year, 4. Joumalize 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. CHART OF ACCOUNTS Water Closet Co. General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 120 Accounts Receivable 129 Allowance for Doubtful Accounts EXPENSES 131 Interest Receivable 510 Cost of Goods Sold 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 524 Repairs Expense 529 Selling Expenses 146 Store Supplies 151 Prepaid Insurance 181 Land 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 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 194 Accumulated Depreciation Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 537 Cash Short and Over 214 Interest Payable 215 Notes Payable 538 Bad Debt Expense 539 Miscellaneous Expense 710 Interest Expense EQUITY 310 Common Stock 311 Retained Earnings 194 Accumulated Depreciation-01 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 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. B. 2 Joumalize 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. PAGE JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 2 Journal 3. Joumalize the adjusting entry to record the accrued interest on Motos (5) and (6) on December 31. Refer to the Chart of Accounts for exact wording of account bles. Assume a 360 day year PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LANLITIES COUTY 1 1 4. Joumalize 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 bles PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIARLITIES EQUITY 1 2 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 4% 80 days 45 days 40,000 2. 3 6% Apr. 7 Aug. 12 120 days 5% 36,000 27,000 4. Oct. 22 30 days 8% 5. Nov. 19 48,000 90 days 3% 6. Dec. 15 72.000 45 days 5% Required: 1. Determine for each noto (a) the due date and (b) the amount of interest due at maturity. Identifying each note by number. Assume a 360-day year. 2 Journaize the entry to record the dishonor of Note (3) on its due date. Refer to the Chart of Accounts for exact wording of account es 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 billes. Assume a 360-day year, 4. Joumalize 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. CHART OF ACCOUNTS Water Closet Co. General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 120 Accounts Receivable 129 Allowance for Doubtful Accounts EXPENSES 131 Interest Receivable 510 Cost of Goods Sold 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 524 Repairs Expense 529 Selling Expenses 146 Store Supplies 151 Prepaid Insurance 181 Land 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 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 194 Accumulated Depreciation Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 537 Cash Short and Over 214 Interest Payable 215 Notes Payable 538 Bad Debt Expense 539 Miscellaneous Expense 710 Interest Expense EQUITY 310 Common Stock 311 Retained Earnings 194 Accumulated Depreciation-01 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 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. B. 2 Joumalize 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. PAGE JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 2 Journal 3. Joumalize the adjusting entry to record the accrued interest on Motos (5) and (6) on December 31. Refer to the Chart of Accounts for exact wording of account bles. Assume a 360 day year PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LANLITIES COUTY 1 1 4. Joumalize 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 bles PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIARLITIES EQUITY 1 2