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 | $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 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 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. |
Solutions
Expert Solution
| 1. Computation of the Due date of each note and interest due on maturity | ||||||
| S. No | Date | Face Amount | Term | Interest | Due Date | Interest on Maturity |
| 1 | 06-Mar | $75,300.00 | 45 | 5.00% | 20-Apr | $470.63 |
| 2 | 23-Apr | $24,500.00 | 60 | 9.00% | 22-Jun | $367.50 |
| 3 | 20-Jul | $41,600.00 | 120 | 5.00% | 17-Nov | $693.33 |
| 4 | 06-Sep | $55,400.00 | 90 | 6.00% | 05-Dec | $831.00 |
| 5 | 29-Nov | $24,100.00 | 60 | 7.00% | 28-Jan | $281.17 |
| 6 | 30-Dec | $67,400.00 | 30 | 6.00% | 29-Jan | $337.00 |
| S. No. | Date | Account Title | Debit | Credit | ||
| 2 | 17-Nov | Account Receivable | $42,293.33 | |||
| Note Receivable | $41,600.00 | |||||
| Interets Receivable | $693.33 | |||||
| (To Record note(3) receivable dishonored, interest income recognized) | ||||||
| 3 | 31-Dec | Interets Receivable | $161.19 | |||
| Interest Income | $161.19 | |||||
| ( To Record Interest accrued on note 5 & 6 for 32 and 1 day respectively). | ||||||
| 4(a) | 28-Jan | Cash | $24,381.17 | |||
| Note Receivable (5) | $24,100.00 | |||||
| Interest Revenue | $131.21 | |||||
| Interets Receivable | $149.96 | |||||
| ( To Record Amount Received for Note5 ) | ||||||
| 4(b) | 29-Jan | Cash | $67,737.00 | |||
| Note Receivable (6) | $67,400.00 | |||||
| Interest Revenue | $325.77 | |||||
| Interets Receivable | $11.23 | |||||
| ( To Record Amount Received for Note6 ) | ||||||
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
$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...
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...
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.
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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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