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. On September 1, 2020, OA accepted a $630,000, 6 months note receivable Note Receivable A with an interest rate of 6%. Interest and the principal balance are due at maturity. On October 31, 2020, OA accepted a $365,000 note receivable with an Note Receivable B 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? Note receivable A Note receivable B months months 3. Prepare the adjusting journal entries to accrue the interest for Note Receivable A and Note Receivable B as 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. On September 1, 2020, OA accepted a $630,000, 6 months note receivable Note Receivable A with an interest rate of 6%. Interest and the principal balance are due at maturity. On October 31, 2020, OA accepted a $365,000 note receivable with an Note Receivable B 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? Note receivable A Note receivable B months months 3. Prepare the adjusting journal entries to accrue the interest for Note Receivable A and Note Receivable B as at December 31, 2020. (Round your final answers to the nearest whole dollars.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Answer the following
Transcribed Image Text: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.
On September 1, 2020, OA accepted a $630,000, 6 months note receivable
with an interest rate of 6%. Interest and the principal balance are due
at maturity.
On October 31, 2020, OA accepted a $365,000 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.
Note Receivable A
Note Receivable B
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?
Note receivable A
Note receivable B
months
months
3. Prepare the adjusting journal entries to accrue the interest for Note Receivable A and Note Receivable B as at December 31, 2020.
(Round your final answers to the nearest whole dollars.)
View transaction list
Journal entry worksheet
2
Record the accrued interest for Note Receivable A.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Dec 31
Record entry
Clear entry
View general journal
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