Cosimo Enterprises issues a $260,000, 45-day, 5% note to Dixon Industries for merchandise inventory.

Required:

A.

Journalize Cosimo 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. Assume a 360-day year.

B.

Journalize Dixon Industries entries to record (refer to the companys Chart of Accounts for exact wording of account titles):

1.	he receipt of the note on January 1.
2.	the receipt of the payment of the note at maturity. Assume a 360-day year.

Journal-Cosimo Enterprises

A.

Journalize Cosimo 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.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5

Journal-Dixon Industries

B. Journalize Dixon 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.

PAGE 2

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5