Entries for Notes Payable

Laughlin Enterprises issues a $130,000, 45-day, 6% note to Morrison Industries for merchandise inventory.

Assume a 360-day year. If an amount box does not require an entry, leave it blank.

a. Journalize Laughlin Enterprises entries to record:

1. the issuance of the note.

2. the payment of the note at maturity.

1. merchandise inventory _______ _______

notes payable _______ _______

2. notes payable _______ _______

interest expense _______ _______

cash _______ _______

b. Journalize Morrison Industries entries to record:

1. the receipt of the note.
2. the receipt of the payment of the note at maturity.

1. notes receivable ______ ______

sales ______ ______

2. cash ______ ______

notes receivable ______ ______

interest revenue ______ ______