Outer Armour (OA) is a company that sells high quality outerwear. OA has accepted two notes receivables
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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.
Required
1. Outer Armour is preparing the financial statements as at December 31, 2020. Explain why interest income needs to be recorded up to December 31 even though Notes Receivable A and B do not need to be fully paid off until 2021.
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 B as at December 31, 2020. ?
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For
Fundamental Accounting Principles Volume I
ISBN: 978-1260305821
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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