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Water Closet Co wholesales bathroom fixtures. During the current year ending December 31, Water Closet received the following notes: Date Term Interest Rate Face Amount
Water Closet Co wholesales bathroom fixtures. During the current year ending December 31, Water Closet received the following notes: Date Term Interest Rate Face Amount $75,000 1. Mar. 6 6% 2. Apr. 7 40,000 10% 60 days 45 days 120 days 30 days 3 Aug. 12 5% 36,000 27,000 4. Oct 22 6% 5. Nov. 19 48,000 3% 90 days 45 days 6. Dec. 15 72,000 4% 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 Noto (3) on its due date. Refer to the Chart of Accounts for exact wording of account titles. 3. Joumalize 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 cont) 4. Journalize the entries to record the receipt of the amounts due on Notes (6) and (6) in January and February. Refer to the Chart of Accounts for exact wording of account billes. 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 Interest Due at Maturity 1 2 3 5 $ 5 6
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