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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
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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3&4 

**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. **4.** Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January and February. Refer to the Chart of Accounts for exact wording of account titles.
Transcribed Image Text:**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. **4.** Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January and February. Refer to the Chart of Accounts for exact wording of account titles.
**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 | |---------|-------------|----------|---------------| | 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% | This table summarizes the financial notes received by Water Closet Co., including the face amount, term duration, and interest rates associated with each transaction.
Transcribed Image Text:**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 | |---------|-------------|----------|---------------| | 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% | This table summarizes the financial notes received by Water Closet Co., including the face amount, term duration, and interest rates associated with each transaction.
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