Water Closet Co. wholesales bathroom fodures. During the current year ending December 31, Water Closet received the folowing notes: 1. Determine for each note (a) tme due date and (D) the amount of CHART OF ACCOUNTS Date Face Amount Term Interest Rate interest due at maturity, identrying each note by number. Assume a Water Closet Co. 1. Mar. 6 $75.000 60 days 4% 360-day year Apr. 7 General Ledger 2. 40,000 45 days 6% Note Due Date Interest Due at Maturity 3. Aug. 12 36.000 120 days 5% 1. ASSETS REVENUE 4. Oct. 22 27,000 30 days 110 Cash 410 Sales 5. Nov. 19 48,000 90 days 3% 111 Petty Cash 610 Interest Revenue 6. Dec. 15 72.000 45 days 120 Accounts Receivable 129 Allowance for Doubtful Accounts EXPENSES Required: 131 Interest Receivable 510 Cost of Goods Sold 1. Determine for each note (a) the due date and (D) the amount of interest due at maturity, identitying each note by number. Assume a 360-day 132 Notes Receivable 141 Merchandise inventory 520 Sales Salaries Expense year 521 Advertising Expense 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 tties 145 Office Supoles 146 Store Supplies 522 Depreciation Expense-Store 3. Journalize the adjusting entry to record the acorued interest on Notes (5) and (6) on December 31. Refer to the Chart of Accounts for exact Equipment wording of account tnes. Assume a 360day 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 151 Prepaid Insurance 523 Delivery Expense 181 Land 524 Repairs Expense exact wording of account ttes 191 Store Equipment 529 Selling Expenses Journal 192 Accumulated Depreciation-Store 530 Ofice Salaries Expense Equipment 531 Rent Expense 2. Journalize the entry to record the dishonor of Nore (3) on its due date. Refer to the Chart of Accounts for exact wordng of account tes . 190 Ofice Equipment 532 Depreciation Expense-Omice 194 Accumulated Depreciation-office Equipment Equipment 533 Insurance Expense PAGE I 534 Ofice Supplies Expense JOURNAL ACCOUNTING EQUATION LIABILITIES 535 Store Supplies Expense DATE DESCRIPTION POST, REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 210 Accounts Payable 536 Credit Card Epense 211 Salaries Payable 537 Cash Short and Over 213 Sales Tax Payable 538 Bad Debt Expense 214 Interest Payable 539 Miscellaneous Expense 215 Notes Payable 710 Interest Expense 3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31. Refer to tme Chart of Accounts for exact wording of account tes Assume a 360-day year. EQUITY 310 Common Stock PAGE I 311 Retained Eamings JOURNAL ACCOUNTING EQUATION 312 Dividends DATE DESCRIPTION POST. REF. DEIT CREDIT ASSETS UABILITIES EQUITY 4. Journalize the entries to record the recept of the amounts due on Notes (5) and (6) in January and February Refer to the Chart of Accounts for exact wording of account tdes. PAGE I JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY
Water Closet Co. wholesales bathroom fodures. During the current year ending December 31, Water Closet received the folowing notes: 1. Determine for each note (a) tme due date and (D) the amount of CHART OF ACCOUNTS Date Face Amount Term Interest Rate interest due at maturity, identrying each note by number. Assume a Water Closet Co. 1. Mar. 6 $75.000 60 days 4% 360-day year Apr. 7 General Ledger 2. 40,000 45 days 6% Note Due Date Interest Due at Maturity 3. Aug. 12 36.000 120 days 5% 1. ASSETS REVENUE 4. Oct. 22 27,000 30 days 110 Cash 410 Sales 5. Nov. 19 48,000 90 days 3% 111 Petty Cash 610 Interest Revenue 6. Dec. 15 72.000 45 days 120 Accounts Receivable 129 Allowance for Doubtful Accounts EXPENSES Required: 131 Interest Receivable 510 Cost of Goods Sold 1. Determine for each note (a) the due date and (D) the amount of interest due at maturity, identitying each note by number. Assume a 360-day 132 Notes Receivable 141 Merchandise inventory 520 Sales Salaries Expense year 521 Advertising Expense 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 tties 145 Office Supoles 146 Store Supplies 522 Depreciation Expense-Store 3. Journalize the adjusting entry to record the acorued interest on Notes (5) and (6) on December 31. Refer to the Chart of Accounts for exact Equipment wording of account tnes. Assume a 360day 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 151 Prepaid Insurance 523 Delivery Expense 181 Land 524 Repairs Expense exact wording of account ttes 191 Store Equipment 529 Selling Expenses Journal 192 Accumulated Depreciation-Store 530 Ofice Salaries Expense Equipment 531 Rent Expense 2. Journalize the entry to record the dishonor of Nore (3) on its due date. Refer to the Chart of Accounts for exact wordng of account tes . 190 Ofice Equipment 532 Depreciation Expense-Omice 194 Accumulated Depreciation-office Equipment Equipment 533 Insurance Expense PAGE I 534 Ofice Supplies Expense JOURNAL ACCOUNTING EQUATION LIABILITIES 535 Store Supplies Expense DATE DESCRIPTION POST, REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 210 Accounts Payable 536 Credit Card Epense 211 Salaries Payable 537 Cash Short and Over 213 Sales Tax Payable 538 Bad Debt Expense 214 Interest Payable 539 Miscellaneous Expense 215 Notes Payable 710 Interest Expense 3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31. Refer to tme Chart of Accounts for exact wording of account tes Assume a 360-day year. EQUITY 310 Common Stock PAGE I 311 Retained Eamings JOURNAL ACCOUNTING EQUATION 312 Dividends DATE DESCRIPTION POST. REF. DEIT CREDIT ASSETS UABILITIES EQUITY 4. Journalize the entries to record the recept of the amounts due on Notes (5) and (6) in January and February Refer to the Chart of Accounts for exact wording of account tdes. PAGE I JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Water Closet Co. wholesales bathroom fixtures. During the current year ending December 31, Water Closet received the following notes:
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.
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.
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