Question

Bennett Enterprises issues a $540,000, 45-day, 9%, note to Spectrum Industries for merchandise inventory. Assume a 360-day year. If required, round your answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. a. Journalize Bennett Enterprises’ entries to record: the issuance of the note. the payment of the note at maturity. 1. Inventory 540,000 Notes Payable 540,000 2. Notes Payable 540,000 Interest Expense Cash

do journal entry for interest expense and cash at the end

Answer 1

Journal entry

Date	account and explanation	debit	credit
	Inventory	540000
	Notes payable		540000
	(To record note)
	Notes payable	540000
	Interest expense (540000*9%*45/360)	6075
	Cash		546075
	(To record amount paid)