Bennett Enterprises issues a $400,000, 90-day, 5% note to Spectrum Industries for merchandise inventory. Required: A. Journalize Bennett Enterprises' entries to record (refer to the company's Chart of Accounts for exact wording of account titles): 1. the issuance of the note. 2. the payment of the note at maturity. Assume a 360-day year. B. Journalize Spectrum Industries' entries to record (refer to the company's Chart of Accounts for exact wording of account titles): 1. the receipt of the note. 2. the receipt of the payment of the note at maturity. Assume a 360-day year.
Bennett Enterprises issues a $400,000, 90-day, 5% note to Spectrum Industries for merchandise inventory. Required: A. Journalize Bennett Enterprises' entries to record (refer to the company's Chart of Accounts for exact wording of account titles): 1. the issuance of the note. 2. the payment of the note at maturity. Assume a 360-day year. B. Journalize Spectrum Industries' entries to record (refer to the company's Chart of Accounts for exact wording of account titles): 1. the receipt of the note. 2. the receipt of the payment of the note at maturity. Assume a 360-day year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Chapter 10 Homework
Bennett Enterprises issues a $400,000, 90-day, 5% note to Spectrum Industries for merchandise
inventory.
Required:
A. Journalize Bennett Enterprises' entries to record (refer to the company's Chart of
Accounts for exact wording of account titles):
1. the issuance of the note.
2. the payment of the note at maturity. Assume a 360-day year.
B. Journalize Spectrum Industries' entries to record (refer to the company's Chart of
Accounts for exact wording of account titles):
1. the receipt of the note.
2. the receipt of the payment of the note at maturity. Assume a 360-day year.
Journal-Bennett Enterprises
A. Journalize Bennett Enterprises' entries to record (refer to the company's Chart of Accounts for exe
1. the issuance of the note on January 1.
2. the payment of the note at maturity on April 1. Assume a 360-day year.
JOURNAL
DATE
DESCRIPTION
POST. REF.
2
3
4
5
Transcribed Image Text:JOURNAL
DATE
DESCRIPTION
POST. REF.
1
2
3
4
Journal-Spectrum Industries
B. Journalize Spectrum Industries' entries to record (refer to the company's Chart of Accounts for e
1. the receipt of the note on January 1.
2. the receipt of the payment of the note at maturity on April 1. Assume a 360-day year.
JOURNAL
DATE
DESCRIPTION
POST. REF.
1
2
4
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