Instructions Griffin Enterprises issues a $660,000, 45-day, 4% note to Romo Indu

Question

Instructions

Griffin Enterprises issues a $660,000, 45-day, 4% note to Romo Industries for merchandise inventory.

the receipt of the payment of the note at maturity. Assume a 360-day year.

Journal-Griffin Ent

Journal-Romo Ind

Required: A. Journalize Griffin Enterprises’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the issuance of the note on January 1. 2. the payment of the note at maturity. Assume a 360-day year. B. Journalize Romo Industries’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the receipt of the note on January 1. 2.

the receipt of the payment of the note at maturity. Assume a 360-day year.

Journal-Griffin Ent

A. Journalize Griffin Enterprises’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the issuance of the note on January 1. 2. the payment of the note at maturity. Assume a 360-day year. B. Journalize Romo Industries’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the receipt of the note on January 1. 2. the receipt of the payment of the note at maturity. Assume a 360-day year.

Journal-Romo Ind

A. Journalize Romo Industries’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the receipt of the note on January 1. 2. the receipt of the payment of the note at maturity. Assume a 360-day year.

Explanation / Answer

In books of giffin co.

In books of romo industries:

Date Title debit credit jan1 Merchandise inventory 660,000 note payable 660,000 [being purchase of inventory made for note issued recorded] 14 feb Note payable 660,000 Interest expense    (660,000 * .04 *45/360) 3300 cash 663300 [being interest and note repaid]

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.