Question

Problem 7-8 On December 31, 2017, Cullumber Inc. rendered services to Beghun Corporation at an agreed price of $105,784, accepting $42,000 down and agreeing to accept the balance in four equal installments of $21,000 receivable each December 31. An assumed interest rate of 12% is imputed. Prepare an amortization schedule. Assume that the effective-interest method is used for amortization purposes (Round answers to o decimal places, e.g. 5,275.) December 31, 2017 Schedule of Note Discount Amortization Carrying Cash Interest Received Amount of Note Date Revenue 12/31/17 12/31/18 21000 12/31/19 21000 12/31/20 21000 12/31/21 21000 Prepare the entries that would be recorded by Cullumber Inc. for the sale on December 31, 2017. (Round answers to o decimal places, e.g. 5,275. If no entry is required, select “No Entry” for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

 



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