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

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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Question
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.
Instructions
First Question
Chart of Accounts
Water Closet Co. wholesales bathroom fixtures. During the current year ending December 31, Water Closet received the following notes:
1. Determine for each note (a) the due date and (b) the amount of
CHART OF ACCOUNTS
Date
Face Amount
Term
Interest Rate
interest due at maturity, identifying each note by number. Assume a
Water Closet Co.
1.
Mar. 6
S75,000
60 days
4%
360-day year.
General Ledger
2.
Apr. 7
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
8%
2.
$
110 Cash
410 Sales
5.
Nov. 19
48,000
90 days
3%
3.
$
111 Petty Cash
610 Interest Revenue
6.
Dec. 15
72,000
45 days
5%
4.
120 Accounts Receivable
5.
129 Allowance for Doubtful Accounts
EXPENSES
Required:
6.
131 Interest Receivable
510 Cost of Goods Sold
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
132 Notes Receivable
520 Sales Salaries Expense
year.
141 Merchandise Inventory
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 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
145 Office Supplies
522 Depreciation Expense-Store
146 Store Supplies
Equipment
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
151 Prepaid Insurance
523 Delivery Expense
181 Land
524 Repairs Expense
exact wording of account titles.
191 Store Equipment
529 Selling Expenses
Journal
192 Accumulated Depreciation-Store
530 Office Salaries Expense
Equipment
531 Rent 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 titles.
193 Office Equipment
532 Depreciation Expense-Office
194 Accumulated Depreciation-Office
Equipment
Equipment
533 Insurance Expense
PAGE 1
534 Office 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 Expense
1
211 Salaries Payable
537 Cash Short and Over
2
213 Sales Tax Payable
538 Bad Debt Expense
3
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 the Chart of Accounts for exact wording of account titles. Assume a 360-day year.
EQUITY
310 Common Stock
PAGE 1
311 Retained Earnings
JOURNAL
ACCOUNTING EQUATION
312 Dividends
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
ASSETS
LIABILITIES
EQUITY
1
2
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.
PAGE 1
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
ASSETS
LIABILITIES
EQUITY
2
4
5
6
8
Transcribed Image Text:Instructions First Question Chart of Accounts Water Closet Co. wholesales bathroom fixtures. During the current year ending December 31, Water Closet received the following notes: 1. Determine for each note (a) the due date and (b) the amount of CHART OF ACCOUNTS Date Face Amount Term Interest Rate interest due at maturity, identifying each note by number. Assume a Water Closet Co. 1. Mar. 6 S75,000 60 days 4% 360-day year. General Ledger 2. Apr. 7 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 8% 2. $ 110 Cash 410 Sales 5. Nov. 19 48,000 90 days 3% 3. $ 111 Petty Cash 610 Interest Revenue 6. Dec. 15 72,000 45 days 5% 4. 120 Accounts Receivable 5. 129 Allowance for Doubtful Accounts EXPENSES Required: 6. 131 Interest Receivable 510 Cost of Goods Sold 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 132 Notes Receivable 520 Sales Salaries Expense year. 141 Merchandise Inventory 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 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 145 Office Supplies 522 Depreciation Expense-Store 146 Store Supplies Equipment 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 151 Prepaid Insurance 523 Delivery Expense 181 Land 524 Repairs Expense exact wording of account titles. 191 Store Equipment 529 Selling Expenses Journal 192 Accumulated Depreciation-Store 530 Office Salaries Expense Equipment 531 Rent 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 titles. 193 Office Equipment 532 Depreciation Expense-Office 194 Accumulated Depreciation-Office Equipment Equipment 533 Insurance Expense PAGE 1 534 Office 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 Expense 1 211 Salaries Payable 537 Cash Short and Over 2 213 Sales Tax Payable 538 Bad Debt Expense 3 214 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 the Chart of Accounts for exact wording of account titles. Assume a 360-day year. EQUITY 310 Common Stock PAGE 1 311 Retained Earnings JOURNAL ACCOUNTING EQUATION 312 Dividends DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 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. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 2 4 5 6 8
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