Page > of 11 - ZOOM + Accountine LA Class Notes and Classwork Chapter 10 - Liabilities: Current, Installment Notes and Contingencies 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 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 Romu 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. Griffin Enterprises. Date Description Dehit Post ref Credit 1 12 1 2 3 4 5 6 7 Romo Industries Date 4 IS 16 7 Description Debit l'ost ref Credit 1 2 9 4 S 6 7 1 2 3 4 15 16 3 7 Non-Interest-Bearing Notes Payable-Discounted Note Terms Discount Discount Rate Proceeds Common when money is burrowed from the bank to have a non-interest-bearing note The interest is deducted from the cash proceeds received on the note At maturity, only the face value of the note is paid. Example: Borrowed $7,500 by signing 90 day non interest-bearing note discounted at 12%. Page 2