Entries for notes payable

Bennett Enterprises issues a $888,000, 45-day, 6%, note to Spectrum Industries for merchandise inventory.

Assume a 360-day year. If required, round your answers to the nearest dollar.If an amount box does not require an entry, leave it blank.

Question Content Area

a. Journalize Bennett Enterprises entries to record:

the issuance of the note.

the payment of the note at maturity.

1.	CashInterest RevenueInventoryNotes PayableNotes ReceivableInventory	Inventory	Inventory
	CashInterest ExpenseInterest RevenueNotes PayableNotes ReceivableNotes Payable	Notes Payable	Notes Payable
2.	CashInterest PayableInterest RevenueNotes PayableNotes ReceivableInterest Payable	Interest Payable	Interest Payable
	Accounts PayableCashInterest ExpenseInterest RevenueNotes ReceivableInterest Expense	Interest Expense	Interest Expense
	CashInterest ExpenseInterest RevenueNotes PayableNotes ReceivableCash	Cash	Cash

Question Content Area

b. Journalize Spectrum Industries entries to record:

the receipt of the note.

the receipt of the payment of the note at maturity.

1.	CashInterest ExpenseInterest RevenueNotes ReceivableSalesNotes Receivable	Notes Receivable	Notes Receivable
	CashInterest ExpenseInterest ReceivableNotes ReceivableSalesSales	Sales	Sales
2.	CashInterest ExpenseInterest RevenueNotes PayableNotes ReceivableCash	Cash	Cash
	CashInterest ExpenseInterest ReceivableNotes PayableNotes ReceivableNotes Receivable	Notes Receivable	Notes Receivable
	Accounts ReceivableCashInterest ExpenseInterest RevenueNotes PayableInterest Revenue	Interest Revenue	Interest Revenue