On December 31, 2017, Bonita Inc. rendered services to Beghun Corporation at an
ID: 2558533 • Letter: O
Question
On December 31, 2017, Bonita Inc. rendered services to Beghun Corporation at an agreed price of $107,016, accepting $41,400 down and agreeing to accept the balance in four equal installments of $20,700 receivable each December 31. An assumed interest rate of 10% is imputed.
Prepare an amortization schedule. Assume that the effective-interest method is used for amortization purposes. (Round answers to 0 decimal places, e.g. 5,275.)
December 31, 2017
Schedule of Note Discount Amortization
Date
Cash
Received
Interest
Revenue
Carrying
Amount of Note
12/31/17 $
$
$
12/31/18
12/31/19
12/31/20
12/31/21
Prepare the entries that would be recorded by Bonita Inc. for the sale on December 31, 2017. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
Prepare the entries that would be recorded by Bonita Inc. for the (a) receipts and (b) interest on December 31, 2018. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
No.
Account Titles and Explanation
Debit
Credit
(a)
(b)
Prepare the entries that would be recorded by Bonita Inc. for the (a) receipts and (b) interest on December 31, 2019. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
No.
Account Titles and Explanation
Debit
Credit
(a)
(b)
Prepare the entries that would be recorded by Bonita Inc. for the (a) receipts and (b) interest on December 31, 2020. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
No.
Account Titles and Explanation
Debit
Credit
(a)
(b)
Prepare the entries that would be recorded by Bonita Inc. for the (a) receipts and (b) interest on December 31, 2021. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
No.
Account Titles and Explanation
Debit
Credit
(a)
(b)
Explanation / Answer
Solution:
Schedule of Note Discount Amortization - Bonita Inc. Date Cash Received Interest Revenue Carrying amount of note 31-Dec-17 $65,616 31-Dec-18 $20,700 $6,562 $51,478 31-Dec-19 $20,700 $5,148 $35,925 31-Dec-20 $20,700 $3,593 $18,818 31-Dec-21 $20,700 $1,882 $0Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.