On December 31, 2017, Sandhill Inc. rendered services to Beghun Corporation at an agreed price of $124,926, accepting $49,600 down and agreeing to accept the balance in four equal installments of $24,800 receivable each December 31. An assumed interest ra

profilejkfhkewqdwq
On December 31, 2017, Sandhill Inc. rendered services to Beghun Corporation at an agreed price of $124,926, accepting $49,600 down and agreeing to accept the balance in four equal installments of $24,800 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.

December 31, 2017
Schedule of Note Discount Amortization

Date
 
Cash
Received
 
Interest
Revenue
 
Carrying
Amount of Note
12/31/17 $
[removed]
[removed]
[removed]
 
[removed]
[removed]
[removed]
 
[removed]
[removed]
[removed]
 
(To record the collection of interest)
  
 
[removed]
[removed]
[removed]
 
[removed]
[removed]
[removed]
 
(To record the collection of the note)
 
    • 10 years ago
    • 5
    Answer(0)
    Bids(0)