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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. 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.)

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...
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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. 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
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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Part 2:

Note receivable A=Sep. 1 to Dec. 31=4 monthsNote receivable A=Nov. 1 to Dec. 31=1 month

 

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