Question

Instructions

Chart of Accounts
Starting Question
Joumal
Instructions
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
$80,000
5%
45 days
2.
Apr. 23
24,000
9
60 days
3.
July 20
42,000
6
120 days
4
Sept. 6
54,000
7
90 days
5.
Nov. 29
27,000
6.
60 days
6
Dec. 30
72,000
5
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

Answer 1

Answer:

Note Due Date Interest due at Maturity

1 Mar 6 $500

2 Apr 23 $360

3 July 20 $840

4 Sept 6 $945

5 Nov 29 $270

6 Dec 30 $300

Explanation:

Calculation to Determine the due date and the amount of interest due at maturity for Flush Mate Co.

Using this formula to Calculate for the amount of interest due at maturity.

Interest due at Maturity= [Face amount * Numbers of days to maturity / 360 * Interest rate]

Note, Due Date, Face Amount, No of days to maturity, Interest rate, Interest due at Maturity

1 Mar 6 80,000× 45/360 ×5% =$500

2 Apr 23 24,000 × 60/360 ×9% =$360

3 July 20 42,000×120/360 ×6% =$840

4 Sept 6 54,000× 90/360 ×7% =$945

5 Nov 29 27,000× 60/360 ×6% =$270

6 Dec 30 72,000× 30/360 ×5% =$300

Therefore the due date and the amount of interest due at maturity for Flush Mate Co are:

Note Due Date Interest due at Maturity

1 Mar 6 $500

2 Apr 23 $360

3 July 20 $840

4 Sept 6 $945

5 Nov 29 $270

6 Dec 30 $300