Bennett Enterprises issues a $675,000, 45-day, 4% note to Spectrum Industries fo
ID: 2583755 • Letter: B
Question
Bennett Enterprises issues a $675,000, 45-day, 4% note to Spectrum Industries for merchandise inventory.
Chart of Accounts-Bennett Ent.
Chart of Accounts-Spectrum Ind.
Journal-Bennett Ent.
PAGE 1
JOURNAL
ACCOUNTING EQUATION
1
2
3
4
5
Journal-Spectrum Ind.
PAGE 1
JOURNAL
ACCOUNTING EQUATION
1
2
3
4
5
Required: A. Journalize Bennett Enterprises’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the issuance of the note. 2. the payment of the note at maturity. Assume a 360-day year. B. Journalize Spectrum Industries’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the receipt of the note. 2. the receipt of the payment of the note at maturity. Assume a 360-day year.Explanation / Answer
A)
1. Accounts payable 675000
Notes payable 675000
2. Notes payable 675000
Interest expense (675000 X 4% X 45/360) 3375
Cash 678375
B) 1) Notes receivable 675000
Sales 675000
2) Cash 678385
Notes receivable 675000
Interest revenue 3375
Related Questions
Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.