On December 31, 2017, Windsor Inc. rendered services to B Corporation at $115,355, accepting $45,800 down and accept the balance in four equal installments of $22,900 receivable each December 31. An assumed interest rate of 12% is imputed. Prepare an amortization schedule. Assume that the effective-interest method
On December 31, 2017, Windsor Inc. rendered services to B Corporation at $115,355, accepting $45,800 down and accept the balance in four equal installments of $22,900 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.
Prepare the entries that would be recorded by Windsor Inc. for the sale on December 31, 2017
" " (a) receipts and (b) interest on December 31, 2018
Grayson: sure—–debits go on the left and credits go on the right. so glad to help you.
Interesting problem, but what is your question? Where is your solution? You do not show any of your work so it is not possible to tell you if it is correct. Presumably you studied this material and have some idea what to do. This is not a free homework solving service. You learn this by doing it. No one will help you when you get a similar problem in a test. Assigning your work to others to solve for you is not appropriate. Students who do that do not belong in business school.
a. The amount receivable is $69,555 based on the value of services provided, in which case the imputed interest rate is 11.56 percent.
b. If you use the imputed interest rate of 12 percent, then the amount receivable is $68,920 which means the value of services provided is not the given amount.
If yo don't know how to prepare these journal entries, consider dropping the class and looking for another major, maybe barber school.
As for the amortization table, use a spreadsheet. Why should someone do this work for you and spend time typing it here? This is not a free homework solving service.You are not asking for help, you are asking for someone to do your work for you. Your ethical standards are questionable and don't belong to a business student.
you could look up ["prepare amortization schedule" excel worksheet] to find a spreadsheet that already does this unless you feel like using your b-school calculator functions
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