On December 31, 2017, Pearl Inc. rendered services to Beghun Corporation at an a

Question

On December 31, 2017, Pearl Inc. rendered services to Beghun Corporation at an agreed price of $107,044, accepting $42,500 down and agreeing to accept the balance in four equal installments of $21,250 receivable each December 31. An assumed interest rate of 12% is imputed.

(I TRIED TO PUT IN THE NUMBERS ON MY OWN. IF I'M WRONG, PLEASE PUT THE RIGHT ANSWERS IN THE EXACT SAME FORMAT. FOR THE OTHER ENTRIES PARTS, PLEASE ANSWER ACCOUNT TITLES AND EXPLANATION ONLY USING LIST OF ACCOUNTS ATTACHED BELOW AND FOLLOW THE SAME FORMAT FOR THE REST OF THE ANSWERS PLEASE.)

Accounts Payable
Accounts Receivable
Advertising Expense
Allowance for Doubtful Accounts
Bad Debt Expense
Cash
Cash Over and Short
Due from Factor
Due to Customer
Discount on Notes Payable
Discount on Notes Receivable
Freight-In
Freight-Out
Gain on Disposal of Land
Interest Expense
Interest Payable
Interest Receivable
Interest Revenue
Inventory
Land
Loss on Sale of Receivables
Miscellaneous Expenses
No Entry
Notes Payable
Notes Receivable
Office Expense
Owner's Drawings
Petty Cash
Postage Expense
Purchase Discounts
Recourse Liability
Sales Discounts
Sales Discounts Forfeited
Sales Revenue
Service Revenue
Supplies
Supplies Expenses
Unearned Sales Revenue

Prepare en amortization schedule. Assurne thet the effective interest method s used or amortization purposes. (Round answers to 0 decimal places, e g. 5,275 ) December 31, 2017 Schedule of Note Discount Cash Received Interest Carrying Date 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 Amount of Note 54544 51039 21250 LEST OF AOCOUNTS Prepare the entries that would be recorded by Pearl 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 anmounts Credit account titJies are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

Explanation / Answer

Solution:-

1. Amortization schedule:-

2. Entry on December 31, 2017:-

3. Entry on December 31, 2018:-

4. Entry on December 31, 2019:-

5. Entry on December 31, 2020:-

6. Entry on December 31, 2021:-

Please Rate or comment if you have any doubt regarding this solution.

December 31, 2017 Date Cash received Interest revenue Carring amount of note Interest calculation 12/31/17 42,500 64,544 12/31/18 21,250 7,745 51,039 64,544 * 12% 12/31/19 21,250 6,125 35,914 51,039 * 12% 12/31/20 21,250 4,310 18,974 35,914 * 12% 12/31/21 21,250 2,277 18,974 * 12%

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