Laughlin Enterprises issues a $$130,000,45-$day, $6\%$ note to Morrison Industries for merchandise inventory.

Required:

a$.$ Journalize Laughlin Enterprises$$ entries to record $($refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered$)$:

$1.$ the issuance of the note on January $1.$

$2.$ the payment of the note at maturity. Assume a $360-$day year.

b$.$ Journalize Morrison Industries$$ entries to record $($refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered$)$:

$1.$ 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

Laughlin Enterprises

General Ledger

ASSETS

$110$ Cash

$111$ Accounts Receivable

$112$ Interest Receivable

$113$ Notes Receivable

$115$ Merchandise 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

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

Morrison Industries

General Ledger

ASSETS

$110$ Cash

$111$ Accounts Receivable

$112$ Interest Receivable

$113$ Notes Receivable

$115$ Merchandise 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

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 b$.$ Journalize Morrison Industries$$ entries to record $($refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered$)$:

$1.$ 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.

How does grading work?

PAGE $2$

JOURNALACCOUNTING EQUATION

Score: $28/63$

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

Merchandise Inventory

$130,000\mathrm{.}00$

$$

Notes Payable

$130,000\mathrm{.}00$

$$

Notes Payable

$130,000\mathrm{.}00$

$$

Interest Payable

$975\mathrm{.}00$

$$

Cash

$130,975\mathrm{.}00$

$$

Points:

$5\mathrm{.}33/12$

Check My Work

Notes may be issued to purchase merchandise or other assets. Each note transaction affects a debtor $($borrower$)$ and creditor $($lender$).$