Question 1

Entries for notes payable

Bennett Enterprises issues a $600,000, 120-day, 4% note to Spectrum Industries for merchandise inventory.

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

Question Content Area

a. Journalize Bennett Enterprises entries to record:

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

Transaction	Account	Debit	Credit
1.	CashInterest RevenueInventoryNotes 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 Spectrum Industries entries to record:

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

Transaction	Account	Debit	Credit
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 -

Employee net pay

Lindsey Vaters weekly gross earnings for the week ended March 9 were $1,200, and her federal income tax withholding was $193.44. Assuming the social security tax rate is 6% and Medicare tax is 1.5% of all earnings, what is Lindseys net pay? For interim computations, carry amounts out to two decimal places. Round your final answer to two decimal places.