**Instructions**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 ||---------|-------------|---------|---------------|| Mar. 6 | $75,000 | 60 days | 4% || Apr. 7 | $40,000 | 45 days | 6% || Aug. 12 | $36,000 | 120 days| 5% || Oct. 22 | $27,000 | 30 days | 8% || Nov. 19 | $48,000 | 90 days | 3% || Dec. 15 | $72,000 | 45 days | 5% |This table displays the financial notes received by Water Closet Co., listing the date of receipt, the face amount of each note, the term duration in days, and the applicable interest rate. Each entry represents a note indicating the repayment timeframe and interest applicable on the specified principal amounts. **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.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.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.

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%

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%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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