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
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