Ouellette Co. adjusts its books monthly. On June 30, 2024, notes receivable include the following: Instructions a.

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Ouellette Co. adjusts its books monthly. On June 30, 2024, notes receivable include the following:


Instructions
a. Calculate the balance in the Interest Receivable and Notes Receivable accounts at June 30, 2024.
b. Record the July transactions and the July 31 adjusting entry for accrued interest receivable.
c. Enter the balances at July 1 in the receivables accounts. Post the entries to the receivables accounts.
d. Show the balance sheet presentation of the receivables accounts at July 31, 2024.
e. How would the journal entry on July 31 be different if DNR Co. were not expected to pay in the future?


Taking It Further

The interest rate for the DNR note is higher than for the other notes. Why might that be the case?

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Related Book For  book-img-for-question

Accounting Principles Volume 1

ISBN: 9781119786818

9th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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