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Flush Mate Co. wholesales bathroom fixtures. During the currentfiscal year, Flush Mate Co. received the following notes:

Date FaceAmount Term Interest Rate
1. Mar. 6 $79,600 45days 6%
2. Apr. 23 27,900 60days 8%
3. July 20 41,500 120days 7%
4. Sept. 6 51,500 90days 8%
5. Nov. 29 30,800 60days 7%
6. Dec. 30 69,300 30days 5%
Required:
1. Determine for each note (a) thedue date and (b) the amount of interest due at maturity,identifying each note by number. (Note: Round eachinterest computation to the whole dollar.)
2. Journalize the entry to recordthe dishonor of Note (3) on its due date. Refer to the Chart ofAccounts for exact wording of account titles.
3. Journalize the adjusting entryto record the accrued interest on Notes (5) and (6) on December 31.Refer to the Chart of Accounts for exact wording of accounttitles.
4.

Journalize the entries to record the receipt of the amountsdue on Notes (5) and (6) in January. Refer to the Chart of Accountsfor exact wording of account titles.

Starting Queston

1. Determine for each note (a) the due date and (b) the amountof interest due at maturity, identifying each note by number.(Note: Round each interest computation to thewhole dollar.)

Note DueDate Interest Due at Maturity
1. $
2. $
3. $
4. $
5. $
6.

$

Journal

Flush Mate Co. wholesales bathroom fixtures. During the currentfiscal year, Flush Mate Co. received the following notes:

Date FaceAmount Term Interest Rate
1. Mar. 6 $79,600 45days 6%
2. Apr. 23 27,900 60days 8%
3. July 20 41,500 120days 7%
4. Sept. 6 51,500 90days 8%
5. Nov. 29 30,800 60days 7%
6. Dec. 30 69,300 30days 5%
Required:
1. Determine for each note (a) thedue date and (b) the amount of interest due at maturity,identifying each note by number. (Note: Round eachinterest computation to the whole dollar.)
2. Journalize the entry to recordthe dishonor of Note (3) on its due date. Refer to the Chart ofAccounts for exact wording of account titles.
3. Journalize the adjusting entryto record the accrued interest on Notes (5) and (6) on December 31.Refer to the Chart of Accounts for exact wording of accounttitles.
4. Journalize the entries torecord the receipt of the amounts due on Notes (5) and (6) inJanuary. Refer to the Chart of Accounts for exact wording ofaccount titles.

X

Starting Question

1. Determine for each note (a) the due date and (b) the amountof interest due at maturity, identifying each note by number.(Note: Round each interest computation to thewhole dollar.)

Note DueDate Interest Due at Maturity
1. $
2. $
3. $
4. $
5. $
6. $

X

Journal

2. Journalize the entry to record the dishonor of Note (3) onits due date. Refer to the Chart of Accounts for exact wording ofaccount titles.

PAGE 1

JOURNAL

DATE DESCRIPTION POST.REF. DEBIT CREDIT

1

2

3

3. Journalize the adjusting entry to record the accrued intereston Notes (5) and (6) on December 31. Refer to the Chart of Accountsfor exact wording of account titles.

PAGE 1

JOURNAL

DATE DESCRIPTION POST.REF. DEBIT CREDIT

1

2

4. Journalize the entries to record the receipt of the amountsdue on Notes (5) and (6) in January. Refer to the Chart of Accountsfor exact wording of account titles.

PAGE 1

JOURNAL

DATE DESCRIPTION POST.REF. DEBIT CREDIT

1

2

3

4

5

6

7

8

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Elin Hessel
Elin HesselLv2
28 Sep 2019

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Flush Mate Co. wholesales bathroom fixtures. During the current fiscal year, Flush Mate Co. received the following notes:

Date Face Amount Interest Rate Term
1. Mar. 6 $84,500 6% 45 days
2. Apr. 23 21,700 9% 60 days
3. July 20 43,900 5% 120 days
4. Sept. 6 51,500 6% 90 days
5. Nov. 29 30,600 5% 60 days
6. Dec. 30 71,300 6% 30 days
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 when calculating interest.(Note: Round each interest computation to the whole dollar.)
2. Journalize the entry to record the dishonor

A note receivable is dishonored when the maker of the note fails to pay the note on the due date.

of Note (3) on its due date. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. Round your answer to the nearest whole dollar.
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 titles. Assume a 360-day year when calculating interest. Round your answer to the nearest whole dollar.
4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. Round your answer to the nearest whole dollar.

2

X

Chart of Accounts

CHART OF ACCOUNTS
Flush Mate 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 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

none

X

Starting Question

Shaded cells have feedback.

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 when calculating interest. (Note: Round each interest computation to the whole dollar.)

Note

Due Date

Interest Due at Maturity
1. selector 1Apr. 20

June 22

Apr. 21

Apr. 20

June 9

Apr. 30
2. selector 2June 22

July 22

June 23

June 22

July 25

June 30
3. selector 3Nov. 17

Dec. 5

Nov. 20

July 1

Nov. 17

July 31
4. selector 4Dec. 5

Dec. 4

Dec. 5

Oct. 31

Dec. 6

Dec. 1
5. selector 5Jan. 28

Sep. 29

Jan. 29

Jan. 28

Nov. 28

Nov. 17
6. selector 6Jan. 29

Nov. 28

Jan. 30

Jan. 29

Nov. 17

Jan. 28

Points:

12 / 12

Feedback

Check My Work

Count the number of days in each month until the total number of days is reached for the term of the note and this will be the due date. Interest is not charged on the first day of the note.

Explanation

none

X

Journal

Shaded cells have feedback.

2. Journalize the entry to record the dishonor

A note receivable is dishonored when the maker of the note fails to pay the note on the due date.

of Note (3) on its due date. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. Round your answer to the nearest whole dollar.How does grading work?

The grader is designed to give you the best score possible, even when you skip lines or enter them out of order. It does this by taking every line you have entered and comparing it to every line in the answer. When it finds the line that gives you the best score, it considers that a match.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

Score: 37/37

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

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✔

2

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3

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✔

Solution

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

Points:

7 / 7

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 titles. Assume a 360-day year when calculating interest. Round your answer to the nearest whole dollar.

How does grading work?

The grader is designed to give you the best score possible, even when you skip lines or enter them out of order. It does this by taking every line you have entered and comparing it to every line in the answer. When it finds the line that gives you the best score, it considers that a match.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

Score: 21/25

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

✔

✔

✔

2

✔

✔

Solution

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

Points:

4.2 / 5

4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. Round your answer to the nearest whole dollar.

All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

Score: 2/99

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

4

5

6

7

8

Solution

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

4

5

6

7

8

Points:

0.36 / 18

Feedback

Check My Work

2.

Typically, the maker of a dishonored note fails to pay the note on the due date. A company that holds a dishonored note transfers the face amount of the note plus any interest due back to an accounts receivable account. Interest revenue is not dependent on receiving the interest at this point.

3.

(Note 5) Calculate the number of days of interest that accrues between November 29 and December 31. Remember interest is not charged on the first day of the note. Use this to calculate:

(a) Interest rate x face amount = annual interest.

(b) Annual interest x (number of days to end of year ÷ 360 days) = interest on note to the end of the year

Two accounts related to interest are used for the transaction.

(Note 6) Calculate the number of days of interest that accrues between December 30 and December 31. Remember interest is not charged on the first day of the note. Use this to calculate:

(a) Interest rate x face amount = annual interest.

(b) Annual interest x (number of days to end of year ÷ 360 days) = interest on note to the end of the year

Two accounts related to interest are used for the transaction.

4.

Cash received will include the maturity value of the note.

Explanation

1

×

Need help with part 3 and 4 please.

The following items were selected from among the transactions completed by Sherwood Co. during the current year:

Mar. 1 Purchased merchandise on account from Kirkwood Co., $366,000, terms n/30.
31 Issued a 30-day, 6% note for $366,000 to Kirkwood Co., on account.
Apr. 30 Paid Kirkwood Co. the amount owed on the note of March 31.
Jun. 1 Borrowed $198,000 from Triple Creek Bank, issuing a 45-day, 8% note.
Jul. 1 Purchased tools by issuing a $270,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%.
16 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6.5% note for $198,000. (Journalize both the debit and credit to the notes payable account.)
Aug. 15 Paid Triple Creek Bank the amount due on the note of July 16.
30 Paid Poulin Co. the amount due on the note of July 1.
Dec. 1 Purchased equipment from Greenwood Co. for $400,000, paying $108,000 cash and issuing a series of ten 8% notes for $29,200 each, coming due at 30-day intervals.
22 Settled a product liability lawsuit with a customer for $320,000, payable in January. Accrued the loss in a litigation claims payable account.
31 Paid the amount due to Greenwood Co. on the first note in the series issued on December 1.
Required:
1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Round your answers to the nearest dollar.
2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording of account titles):
a. Product warranty cost, $29,000.
b. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year.

Chart of Accounts

CHART OF ACCOUNTS
Sherwood Co.
General Ledger
ASSETS
110 Cash
111 Accounts Receivable
112 Interest Receivable
113 Notes Receivable
115 Inventory
116 Supplies
118 Prepaid Insurance
120 Land
123 Building
124 Accumulated Depreciation-Building
125 Office Equipment
126 Accumulated Depreciation-Office Equipment
127 Tools
128 Accumulated Depreciation-Tools
LIABILITIES
210 Accounts Payable-Kirkwood Co.
211 Accounts Payable-Greenwood Co.
212 Accounts Payable-Poulin Co.
213 Interest Payable
214 Notes Payable
215 Salaries Payable
216 Social Security Tax Payable
217 Medicare Tax Payable
218 Employees Federal Income Tax Payable
219 Employees State Income Tax Payable
220 Group Insurance Payable
221 Bond Deductions Payable
224 Federal Unemployment Tax Payable
225 State Unemployment Tax Payable
226 Vacation Pay Payable
227 Unfunded Pension Liability
228 Product Warranty Payable
229 Litigation Claims Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Salaries Expense
524 Depreciation Expense-Building
525 Delivery Expense
526 Repairs Expense
529 Selling Expenses
531 Rent Expense
532 Depreciation Expense-Office Equipment
533 Depreciation Expense-Tools
534 Insurance Expense
535 Supplies Expense
536 Payroll Tax Expense
537 Vacation Pay Expense
538 Pension Expense
539 Cash Short and Over
540 Product Warranty Expense
541 Miscellaneous Expense
710 Interest Expense
720 Litigation Loss

Journal

1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Scroll down to access page 12 of the journal. Round your answers to the nearest dollar.

PAGE 11

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

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29
2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording of account titles):
A. Product warranty cost, $29,000.
B. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year.

PAGE 12

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

Adjusting Entries

2

3

4

5

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.

Journalize the entries to record the transactions. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. Round answers to the nearest dollar amount.

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

Journalize the entries to record the transactions for the year 20Y3. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. Round answers to the nearest dollar amount.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

4

Journalize the entries to record the transactions for the year 20Y4. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. Round answers to the nearest dollar amount.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

4

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