On December 31, 2017, Dallas Inc. provided consulting services to Uplem Company
ID: 2396134 • Letter: O
Question
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.
Explanation / Answer
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
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.