CengageNowv2 1 Online teaching and learning resource from Cengage Learning v2.ce

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CengageNowv2 1 Online teaching and learning resource from Cengage Learning v2.cengagenow.comilm/takeA ntUntakenAssignment.do?assignmentid 686753 CengageNoww2 | Online teaching and learning resource from Cengage Leaming Entries for notes payable Bennett Enterprises issues a $804,000, 60-day, 9%, note to Spectrum Industries for merchandise inventory. Assume a 360-day year. required-round your answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. a. Journalize Bennett Enterprises' entries to record 1-the issuance of the note. 2, the payment of the note at maturity. 1. 2. b. Journalize Spectrum Industries' entries to record: 1. the receipt of the note. 2. the receipt of the payment of the note at maturity. 1.

Explanation / Answer

a) Journal entry : Bennet enterprises :

b) Journal entry : Spectrum industries :

Date accounts & explanation debit credit Merchandise inventory a/c 804000 Notes payable 804000 (TO record issuance of notes) Notes payable a/c 804000 Interest expenses a/c (804000*9%*60/360) 12060 Cash a/c 816060 (To record maturity of notes)

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