Entries for Notes PayableLaughlin 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:the issuance of the note. 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:the receipt of the note.the receipt of the payment of the note at maturity.1.Notes Receivable Sales 2.Cash Notes Receivable Interest Revenue

Record the entries in the books of L enterprise as follows: Resultant Table:

Answered: Journalize Laughlin Enterprises’…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

See similar textbooks

Related questions

Question

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:

the issuance of the note.
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

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions