Question
In: Accounting
On December 31, 2017, Dallas Inc. provided consulting services to Uplem Company at an agreed price...
On December 31, 2017, Dallas Inc. provided consulting services to Uplem Company at an agreed price of $356,630.79. Dallas accepted $75,000 down and agreed to accept the balance in six equal installments of $60,000 to be received annually on December 31st, beginning December, 2018. An assumed interest rate of 7.5% is imputed.
Instructions:
Using Excel, prepare the amortization schedule and then record all required journal entries that would be made by Dallas and Uplem on the following dates (a) December 31, 2017; (b) December 31, 2018; (c) December 31, 2019; (d) December 31, 2020; (e) December 31, 2021; (f) December 31, 2022; (g) December 31, 2023.
Solutions
Expert Solution
| Amrtization | ||||||
| Date | Annual | Interest | Principal | Balance amount | ||
| Payment | Expense | Amount paid | ||||
| 31.12.17 | 281630.8 | |||||
| 31.12.18 | 60000 | 21122.31 | 38877.69 | 242753.1 | ||
| 31.12.19 | 60000 | 18206.48 | 41793.52 | 200959.6 | ||
| 31.12.202 | 60000 | 15071.97 | 44928.03 | 156031.6 | ||
| 31.12.21 | 60000 | 11702.37 | 48297.63 | 107733.9 | ||
| 31.12.22 | 60000 | 8080.044 | 51919.96 | 55813.96 | ||
| 31.12.23 | 60000 | 4186.04 | 55813.96 | 0 | ||
| Journal Entries: | ||||||
| Date | Accounts title and explanation | Debit $ | Credit $ | |||
| 31.12.17 | Notes receivable Account Dr. | 281630.8 | ||||
| Cash account Dr. | 75000 | |||||
| Consultation service revenue Account | 356630.8 | |||||
| 31.12.18 | Cash account Dr. | 60000 | ||||
| Notes receivable Account | 38877.69 | |||||
| Interest revenue | 21122.31 | |||||
| 31.12.19 | Cash account Dr. | 60000 | ||||
| Notes receivable Account | 41793.52 | |||||
| Interest revenue | 18206.48 | |||||
| 31.12.20 | Cash account Dr. | 60000 | ||||
| Notes receivable Account | 44928.03 | |||||
| Interest revenue | 15071.97 | |||||
| 31.12.21 | Cash account Dr. | 60000 | ||||
| Notes receivable Account | 48297.63 | |||||
| Interest revenue | 11702.37 | |||||
| 31.12.22 | Cash account Dr. | 60000 | ||||
| Notes receivable Account | 51919.96 | |||||
| Interest revenue | 8080.04 | |||||
| 31.12.23 | Cash account Dr. | 60000 | ||||
| Notes receivable Account | 55813.96 | |||||
| Interest revenue | 4186.04 | |||||
ekkarill92 answered 1 year agoRelated Solutions
On december 31, 2017, Houston Inc. Provided consulting services to Conroe companyat anagreed price of $356,630.79....
On december 31, 2017, Houston Inc. Provided consulting services
to Conroe companyat anagreed price of $356,630.79. Houston accepted
$75000 down and agreed to accept the balance in six equal
installments of $60,000 to be received annually on December 31st,
beginning December, 2018. An assumed interest rate of 7.5% is
imputed. using excel, prepare the amortization schedule and then
record all required journal entries-that would be made by Houston
and Conroe on the following dates a) December 31, 2017; b) December...
On December 31, 2017, Sunland Inc. rendered services to Beghun Corporation at an agreed price of...
On December 31, 2017, Sunland 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 0 decimal places, e.g. 5,275.)
December 31, 2017
Schedule of Note Discount Amortization
Date
Cash
Received
Interest
Revenue
Carrying...
On December 31, 2017, Bonita Inc. rendered services to Beghun Corporation at an agreed price of...
On December 31, 2017, Bonita Inc. rendered services to Beghun
Corporation at an agreed price of $107,016, accepting $41,400 down
and agreeing to accept the balance in four equal installments of
$20,700 receivable each December 31. An assumed interest rate of
10% is imputed.
Prepare an amortization schedule. Assume that the
effective-interest method is used for amortization purposes. (Round
answers to 0 decimal places, e.g. 5,275.)
December 31, 2017
Schedule of Note Discount Amortization
Date
Cash
Received
Interest
Revenue
Carrying...
On December 31, 2020, Monty Inc. rendered services to Beghun Corporation at an agreed price of...
On December 31, 2020, Monty Inc. rendered services to Beghun
Corporation at an agreed price of $125,934, accepting $50,000 down
and agreeing to accept the balance in four equal installments of
$25,000 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 0 decimal places, e.g.
5,275.)
December 31, 2020
Schedule of Note Discount Amortization
Date
Cash
Received
Interest
Revenue
Discount...
On December 31, 2020, Pronghorn Inc. rendered services to Beghun Corporation at an agreed price of...
On December 31, 2020, Pronghorn Inc. rendered services to Beghun
Corporation at an agreed price of $120,418, accepting $47,200 down
and agreeing to accept the balance in four equal installments of
$23,600 receivable each December 31. An assumed interest rate of
11% is imputed.
Prepare an amortization schedule. Assume that the
effective-interest method is used for amortization purposes.
(Round answers to 0 decimal places, e.g.
5,275.)
December 31, 2020
Schedule of Note Discount Amortization
Date
Cash
Received
Interest
Revenue
Discount...
On December 31, 2020, Oakbrook Inc. rendered services to Beghun Corporation at an agreed price of...
On December 31, 2020, Oakbrook Inc. rendered services to Beghun
Corporation at an agreed price of $102,049, accepting $40,000 down
and agreeing to accept the balance in four equal installments of
$20,000 receivable each December 31. An assumed interest rate of
11% is imputed.
1. Instructions: Complete the note amortization table.
Date
Cash Received
Interest Revenue
Discount Amortization
Discount Balance
Carrying Value
2. Instructions: Journalize the transactions for the note
origination, interest recognition, and the note collection at
maturity.
On December 31, 2018, Kohl Company performed engineering consulting services for Hemingway, Inc. Hemingway was short...
On December 31, 2018, Kohl Company performed engineering
consulting services for Hemingway, Inc. Hemingway was short of
cash, and Kohl Co. agreed to accept a $200,000
zero-interest-bearing note due December 31, 2020, as payment in
full. Hemingway is somewhat of a credit risk and typically borrows
funds at a rate of 10%. Kohl is much more creditworthy and has
various lines of credit at 6%.
Prepare the following journal entries for Kohl Co.:
(a) Prepare the journal entry to record...
2. On December 31, 2014, Franklin Company performed consulting services for Hensley Corporation. Hensley was short...
2. On December 31, 2014, Franklin Company performed consulting
services for Hensley Corporation. Hensley was short on cash, so
Franklin Company agreed to accept a $200,000 zero-interest bearing
note due on December 31, 2016 as payment in full. Hensley is
somewhat of a credit risk and typically borrows funds at a rate of
10%.
Prepare the journal entry to record the transaction of December
31, 2014 for Franklin Company.
Assume Franklin’s fiscal year end is December 31, prepare the
journal...
Eastern Travel Services, Inc. Comparative Balance Sheets December 31, 2017 and 2016 Assets 2017 2016 Current...
Eastern Travel Services, Inc.
Comparative Balance Sheets
December 31, 2017 and 2016
Assets
2017
2016
Current assets:
Cash
$45,000
$20,000
Accounts receivable
77,000
81,000
Inventory
60,000
19,000
Prepaid insurance
13,000
17,000
Total current assets
$195,000
$137,000
Land
$105,000
$120,000
Equipment
84,000
53,000
Less: Accumulated depreciation
(21,000)
(16,000)
Total assets
$363,000
$294,000
Liabilities
Current liabilities:
Accounts payable
$29,000
$38,000
Wages payable
28,000
22,000
Interest payable
17,000
16,000
Income taxes payable
13,000
10,000
Total current liabilities
$87,000
$86,000
Notes payable (long-term)
93,000...
From inception of operations to December 31, 2017, Collin, Inc. provided for uncollectible accounts receivable under...
From inception of operations to December 31, 2017, Collin, Inc.
provided for uncollectible accounts receivable under the allowance
method: provisions were made monthly at 1% of credit sales; bad
debts written off were charged to the allowance account; recoveries
of bad debts previously written off were credited to the allowance
account; and no year-end adjustments to the allowance account were
made. Collin’s usual credit terms are net 30 days.
The balance in Allowance for Doubtful Accounts was $86,000 at
January...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- The following tables shows 5 year returns of different funds Mutual Fund Annual Return (%) Year...
- According to the textbook, segmentation variables can be grouped into the following categories: geographic, demographic, psychographic...
- do you think there is the difference between guerrilla marketing and public relationship? Why or why...
- What the eleven project control cycle that makes a project successful? Why control and evaluate projects?...
- 5) Three capacitors, all initially without any dielectrics inserted, of C1 = 3 micro-farads, C2 =...
- Consider the following problem Maximize Z=2x1 + 5x2 + x3 subject to 4x1+...
- what other elements does a star burn as fuel besides hydrogen?
ADVERTISEMENT