Intermediate Accounting, 13th Edition
by Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
March 2009, ©2010
ISBN 978-0-470-37494-8
P7-9 (Notes Receivable Journal Entries) On December 31, 2010, Oakbrook Inc. rendered services to Begin Corporation at an agreed price of $102,049, accepting $40,000 down and agreeing to accepy the balance in four equal installments of $20,000 receivable each December 31. An assumed interest rate of 11% is imputed.
Instructions
Prepare the entries that would be recorded by Oakbrook Inc. for the sale and for the receipts and interest on the following dates. (Assume that the effective interest method is used for amortization purposes.)
(a) December 31, 2010
(b) December 31, 2011
(c) December 31, 2012
(d) December 31, 2013
(e) December 31, 2014
No comments:
Post a Comment