Griffin Enterprises issues a $660,000, 45-day, 4% note to Romo Industries for merchandise inventory.

Required: A) Journalize Griffin 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 Romo 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. Assume a 360-day year

CHART OF ACCOUNTS

Griffin Enterprises

General Ledger

ASSETS

110Cash

111Accounts Receivable

112Interest Receivable

113Notes Receivable

115Merchandise Inventory

116Supplies

118Prepaid Insurance

120Land

123Building

124Accumulated Depreciation-Building

125Office Equipment

126Accumulated Depreciation-Office Equipment

LIABILITIES

210Accounts Payable

213Interest Payable

214Notes Payable

215Salaries Payable

216Social Security Tax Payable

217Medicare Tax Payable

218Employees Federal Income Tax Payable

219Employees State Income Tax Payable

221Retirement Savings Deductions Payable

224Federal Unemployment Tax Payable

225State Unemployment Tax Payable

226Vacation Pay Payable

227Unfunded Pension Liability

228Product Warranty Payable

229EPA Fines Payable

230Litigation Claims Payable

EQUITY

310Owner, Capital

311Owner, Drawing

312Income Summary

REVENUE

410Sales

610Interest Revenue

EXPENSES

510Cost of Merchandise Sold

520Salaries Expense

524Depreciation Expense-Building

525Delivery Expense

526Repairs Expense

529Selling Expenses

531Rent Expense

532Depreciation Expense-Office Equipment

533Insurance Expense

534Supplies Expense

535Payroll Tax Expense

536Vacation Pay Expense

537Pension Expense

538Cash Short and Over

539Product Warranty Expense

540Damage Awards and Fines

541Miscellaneous Expense

710Interest Expense

CHART OF ACCOUNTS

Romo Industries

General Ledger

ASSETS

110Cash

111Accounts Receivable

112Interest Receivable

113Notes Receivable

115Merchandise Inventory

116Supplies

118Prepaid Insurance

120Land

123Building

124Accumulated Depreciation-Building

125Office Equipment

126Accumulated Depreciation-Office Equipment

LIABILITIES

210Accounts Payable

213Interest Payable

214Notes Payable

215Salaries Payable

216Social Security Tax Payable

217Medicare Tax Payable

218Employees Federal Income Tax Payable

219Employees State Income Tax Payable

221Retirement Savings Deductions Payable

224Federal Unemployment Tax Payable

225State Unemployment Tax Payable

226Vacation Pay Payable

227Unfunded Pension Liability

228Product Warranty Payable

229EPA Fines Payable

230Litigation Claims Payable

EQUITY

310Owner, Capital

311Owner, Drawing

312Income Summary

REVENUE

410Sales

610Interest Revenue

EXPENSES

510Cost of Merchandise Sold

520Salaries Expense

524Depreciation Expense-Building

525Delivery Expense

526Repairs Expense

529Selling Expenses

531Rent Expense

532Depreciation Expense-Office Equipment

533Insurance Expense

534Supplies Expense

535Payroll Tax Expense

536Vacation Pay Expense

537Pension Expense

538Cash Short and Over

539Product Warranty Expense

540Damage Awards and Fines

541Miscellaneous Expense

710Interest Expense