Question
In: Accounting
Flush Mate Co. wholesales bathroom fixtures. During the current fiscal year, Flush Mate Co. received the...
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 | $78,000 | 4% | 45 days |
| 2. | Apr. 23 | 24,500 | 9 | 60 days |
| 3. | July 20 | 45,900 | 5 | 120 days |
| 4. | Sept. 6 | 58,700 | 6 | 90 days |
| 5. | Nov. 29 | 27,400 | 7 | 60 days |
| 6. | Dec. 30 | 67,500 | 6 | 30 days |
| Required: | |
| 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. |
Solutions
Expert Solution
Note 5
On January 1 some amount of interest is recorded as accrued. This interest was receivable in previous year. As accounting is based on accrual concept we calculate the interest revenue accrued for previous year till December 31. This amount is due on January 1.
31+1 = 32 days interest
Total days in year = 360
Rate of interest = 7% p.a.
principal amount = 27400
interest accrued = 27400 * 7% * 32/360 which is 170.49 approx
| Date | Particular | Debit | Credit |
| 1 January | Accrued Interest | 170.49 | |
| To Interest Revenue | 170.49 | ||
| (Being interest revenue receivable on Note 5) |
Note 6
day = 31 - 30 which is 1
number of days = 360
Interest rate = 6% p.a
principal payment = 67500
Interest accrued = 67500 * 6% * 1/360 which is 11.25
| Date | Particular | Debit | Credit |
| 1 January | Accrued Interest | 11.25 | |
| To Interest Revenue | 11.25 | ||
| (Being interest revenue receivable on Note 6) |
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ekkarill92 answered 1 year agoRelated Solutions
Flush Mate Co. wholesales bathroom fixtures. During the current fiscal year, Flush Mate Co. received the...
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
$82,000
6%
45 days
2.
Apr. 23
28,900
10
60 days
3.
July 20
41,400
7
120 days
4.
Sept. 6
49,700
7
90 days
5.
Nov. 29
26,300
5
60 days
6.
Dec. 30
72,000
6
30 days
Required:
1. Determine for each note (a) the due date and (b) the amount...
Flush Mate Co. wholesales bathroom fixtures. During the current fiscal year, Flush Mate Co. received the...
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
$78,600
5%
45 days
2.
Apr. 23
25,600
8
60 days
3.
July 20
37,100
6
120 days
4.
Sept. 6
49,600
7
90 days
5.
Nov. 29
30,700
6
60 days
6.
Dec. 30
68,600
6
30 days
Required:
1.
Determine for each note (a) the due date and (b) the amount...
Flush Mate Co. wholesales bathroom fixtures. During the current fiscal year, Flush Mate Co. received the...
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
$75,300
5%
45
days
2.
Apr. 23
24,500
9%
60
days
3.
July 20
41,600
5%
120
days
4.
Sept. 6
55,400
6%
90
days
5.
Nov. 29
24,100
7%
60
days
6.
Dec. 30
67,400
6%
30
days
Required:
1.
Determine for each note (a) the
due date and (b) the amount...
Water Closet Co. wholesales bathroom fixtures. During the current year ending December 31, Water Closet received...
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%
JOURNAL
ACCOUNTING EQUATION
Score: 91/99
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
1
Jan....
Details of notes receivable and related entries​ Water Closet Co. wholesales bathroom fixtures. During the current...
Details of notes receivable and related entries​
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
2%
2.
Apr. 7
40,000
45 days
9%
3.
Aug. 12
36,000
120 days
5%
4.
Oct. 22
27,000
30 days
8%
5.
Nov. 19
48,000
90 days
9%
6.
Dec. 15
72,000
45 days
5%
Required:
1.
Determine for each note...
en-X Ads Co. produces advertising videos. During the current fiscal year, Gen-X Ads Co. received the...
en-X Ads Co. produces advertising videos. During the current
fiscal year, Gen-X Ads Co. received the following notes:
Date
Face Amount
Interest Rate
Term
1.
Apr. 10
$78,000
4%
60
days
2.
June 24
18,000
6
30
days
3.
July 1
63,000
6
120
days
4.
Oct. 31
63,000
9
60
days
5.
Nov. 15
90,000
6
60
days
6.
Dec. 27
108,000
4
30
days
Required:
Assume 360 days in a year.
1. Determine for each note (a) the...
Gen-X Ads Co. produces advertising videos. During the current fiscal year, Gen-X Ads Co. received the...
Gen-X Ads Co. produces
advertising videos. During the current fiscal year, Gen-X Ads Co.
received the following notes:
Date
Face Amount
Interest Rate
Term
1.
Apr. 10
$75,000
4
%
60
days
2.
June 24
18,000
6
30
days
3.
July 1
45,000
6
120
days
4.
Oct. 31
45,000
5
60
days
5.
Nov. 15
90,000
6
60
days
6.
Dec. 27
180,000
4
30
days
Required:
Assume 360 days in a
year.
1.
Determine for each note (a)...
During the first month of its current fiscal year, Green Co. incurred repair costs of $19,000...
During the first month of its current fiscal year, Green Co.
incurred repair costs of $19,000 on a machine that had 4 years of
remaining depreciable life. The repair cost was inappropriately
capitalized. Green Co. reported operating income of $169,000 for
the current year.
Required:
a. Assuming that Green Co. took a full year's
straight-line depreciation expense in the current year, calculate
the operating income that should have been reported for the current
year.
b. Assume that Green Co.'s total...
During the first month of its current fiscal year, Green Co. incurred repair costs of $16,000...
During the first month
of its current fiscal year, Green Co. incurred repair costs of
$16,000 on a machine that had 4 years of remaining depreciable
life. The repair cost was inappropriately capitalized. Green Co.
reported operating income of $164,000 for the current year.
Required:
a.
Assuming that Green Co. took a full year's straight-line
depreciation expense in the current year, calculate the operating
income that should have been reported for the current year.
Operating
Income
b.
Assume that Green...
During the first month of its current fiscal year, Green Co. incurred repair costs of $24,000...
During the first month of its current fiscal year, Green Co.
incurred repair costs of $24,000 on a machine that had 4 years of
remaining depreciable life. The repair cost was inappropriately
capitalized. Green Co. reported operating income of $164,000 for
the current year.
a. Assuming that Green Co. took a full year's
straight-line depreciation expense in the current year, calculate
the operating income that should have been reported for the current
year.
b. Assume that Green Co.'s total assets...
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