Instructions Griffin Enterprises issues a $660,000, 45-day, 4% note to Romo Indu
ID: 2496633 • Letter: I
Question
Instructions
Griffin Enterprises issues a $660,000, 45-day, 4% note to Romo Industries for merchandise inventory.
the receipt of the payment of the note at maturity. Assume a 360-day year.
Journal-Griffin Ent
Journal-Romo Ind
Required: A. Journalize Griffin Enterprises’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the issuance of the note on January 1. 2. the payment of the note at maturity. Assume a 360-day year. B. Journalize Romo Industries’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the receipt of the note on January 1. 2.the receipt of the payment of the note at maturity. Assume a 360-day year.
Journal-Griffin Ent
A. Journalize Griffin Enterprises’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the issuance of the note on January 1. 2. the payment of the note at maturity. Assume a 360-day year. B. Journalize Romo Industries’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the receipt of the note on January 1. 2. the receipt of the payment of the note at maturity. Assume a 360-day year.Journal-Romo Ind
A. Journalize Romo Industries’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the receipt of the note on January 1. 2. the receipt of the payment of the note at maturity. Assume a 360-day year.Explanation / Answer
In books of giffin co.
In books of romo industries:
Date Title debit credit jan1 Merchandise inventory 660,000 note payable 660,000 [being purchase of inventory made for note issued recorded] 14 feb Note payable 660,000 Interest expense (660,000 * .04 *45/360) 3300 cash 663300 [being interest and note repaid]