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.

Question Content Area

a. Journalize Laughlin Enterprises entries to record:

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

1.	CashInterest RevenueMerchandise InventoryNotes PayableNotes Receivable	- Select -	- Select -
	CashInterest ExpenseInterest RevenueNotes PayableNotes Receivable	- Select -	- Select -
2.	CashInterest PayableInterest RevenueNotes PayableNotes Receivable	- Select -	- Select -
	Accounts PayableCashInterest ExpenseInterest RevenueNotes Receivable	- Select -	- Select -
	CashInterest ExpenseInterest RevenueNotes PayableNotes Receivable	- Select -	- Select -

Question Content Area

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.	CashInterest ExpenseInterest RevenueNotes ReceivableSales	- Select -	- Select -
	CashInterest ExpenseInterest ReceivableNotes ReceivableSales	- Select -	- Select -
2.	CashInterest ExpenseInterest RevenueNotes PayableNotes Receivable	- Select -	- Select -
	CashInterest ExpenseInterest ReceivableNotes PayableNotes Receivable	- Select -	- Select -
	Accounts ReceivableCashInterest ExpenseInterest RevenueNotes Payable	- Select -	- Select -