Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 Note Receivable B. On September 1, 2020, OA accepted a $680,000, 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 $390,000 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? ces 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 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 1 2 Record the accrued interest for Note Receivable A. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit Record entry Clear entry View general journal > Journal entry worksheet < 1 2 Record the accrued interest for Note Receivable B. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit Record entry Clear entry View general journal < Prev 10 of 10 Next C Cloudy
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started