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Bennett Enterprises issues a $675,000, 45-day, 4% note to Spectrum Industries for merchandise inventory. Required: A. Journalize Bennett Enterprises entries to record (refer to the

Bennett Enterprises issues a $675,000, 45-day, 4% note to Spectrum Industries for merchandise inventory.

Required:
A. Journalize Bennett Enterprises entries to record (refer to the companys 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 companys 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.

Chart of Accounts-Bennett Ent.

CHART OF ACCOUNTS
Bennett Enterprises
General Ledger
ASSETS
110 Cash
111 Accounts Receivable
112 Interest Receivable
113 Notes Receivable
115 Inventory
116 Supplies
118 Prepaid Insurance
120 Land
123 Building
124 Accumulated Depreciation-Building
125 Office Equipment
126 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
213 Interest Payable
214 Notes Payable
215 Salaries Payable
216 Social Security Tax Payable
217 Medicare Tax Payable
218 Employees Federal Income Tax Payable
219 Employees State Income Tax Payable
221 Retirement Savings Deductions Payable
224 Federal Unemployment Tax Payable
225 State Unemployment Tax Payable
226 Vacation Pay Payable
227 Unfunded Pension Liability
228 Product Warranty Payable
229 EPA Fines Payable
230 Litigation Claims Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Salaries Expense
524 Depreciation Expense-Building
525 Delivery Expense
526 Repairs Expense
529 Selling Expenses
531 Rent Expense
532 Depreciation Expense-Office Equipment
533 Insurance Expense
534 Supplies Expense
535 Payroll Tax Expense
536 Vacation Pay Expense
537 Pension Expense
538 Cash Short and Over
539 Product Warranty Expense
540 Damage Awards and Fines
541 Miscellaneous Expense
710 Interest Expense

Chart of Accounts-Spectrum Ind.

CHART OF ACCOUNTS
Spectrum Industries
General Ledger
ASSETS
110 Cash
111 Accounts Receivable
112 Interest Receivable
113 Notes Receivable
115 Inventory
116 Supplies
118 Prepaid Insurance
120 Land
123 Building
124 Accumulated Depreciation-Building
125 Office Equipment
126 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
213 Interest Payable
214 Notes Payable
215 Salaries Payable
216 Social Security Tax Payable
217 Medicare Tax Payable
218 Employees Federal Income Tax Payable
219 Employees State Income Tax Payable
221 Retirement Savings Deductions Payable
224 Federal Unemployment Tax Payable
225 State Unemployment Tax Payable
226 Vacation Pay Payable
227 Unfunded Pension Liability
228 Product Warranty Payable
229 EPA Fines Payable
230 Litigation Claims Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Salaries Expense
524 Depreciation Expense-Building
525 Delivery Expense
526 Repairs Expense
529 Selling Expenses
531 Rent Expense
532 Depreciation Expense-Office Equipment
533 Insurance Expense
534 Supplies Expense
535 Payroll Tax Expense
536 Vacation Pay Expense
537 Pension Expense
538 Cash Short and Over
539 Product Warranty Expense
540 Damage Awards and Fines
541 Miscellaneous Expense
710 Interest Expense

Journal-Bennett Ent.

A. Journalize Bennett Enterprises entries to record (refer to the companys 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 on February 15. Assume a 360-day year and round amounts to the nearest whole dollar.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

4

5

Journal-Spectrum Ind.

B. Journalize Spectrum Industries entries to record (refer to the companys 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 on February 15. Assume a 360-day year and round amounts to the nearest whole dollar.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

4

5

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