Outer Armour (OA) is a company that sells high quality outerwear. OA has accepted two notes receivables from customers and has a December 31, 2020 year-end. Note Receivable A On September 1, 2020, OA accepted a $580,000, 6 months note receivable with an interest rate of 6%. Interest and the principal balance are due at maturity. Note Receivable B On October 31, 2020, OA accepted a $340,000 note receivable with an interest rate of 4.5%. Interest is paid the first day of each following month and the principal is due at maturity on June 30, 2021. Required: 1. Not available in connect. 2. How many months need to be accrued for Notes Receivable A and B as of December 31, 2020? 3. Prepare the adjusting journal entries to accrue the interest for Note Receivable A and Note Receivable Bas at December 31, 2020. (Round your final answers to the nearest whole dollars.)

Outer Armour (OA) is a company that sells high quality outerwear. OA has accepted two notes receivables from customers and has a December 31, 2020 year-end. Note Receivable A On September 1, 2020, OA accepted a $580,000, 6 months note receivable with an interest rate of 6%. Interest and the principal balance are due at maturity. Note Receivable B On October 31, 2020, OA accepted a $340,000 note receivable with an interest rate of 4.5%. Interest is paid the first day of each following month and the principal is due at maturity on June 30, 2021. Required: 1. Not available in connect. 2. How many months need to be accrued for Notes Receivable A and B as of December 31, 2020? 3. Prepare the adjusting journal entries to accrue the interest for Note Receivable A and Note Receivable Bas at December 31, 2020. (Round your final answers to the nearest whole dollars.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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