question archive On December 31, 2017, Sandhill Inc
On December 31, 2017, Sandhill Inc
Subject:AccountingPrice: Bought3
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 $ $ $12/31/18 12/31/19 12/31/20 12/31/21 SHOW LIST OF ACCOUNTSLINK TO TEXTPrepare the entries that would be recorded by Sandhill 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 ExplanationDebitCredit SHOW LIST OF ACCOUNTSLINK TO TEXTPrepare the entries that would be recorded by Sandhill 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 ExplanationDebitCredit(a) (b) SHOW LIST OF ACCOUNTSLINK TO TEXTPrepare the entries that would be recorded by Sandhill 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 ExplanationDebitCredit(a) (b) SHOW LIST OF ACCOUNTSLINK TO TEXTPrepare the entries that would be recorded by Sandhill 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 ExplanationDebitCredit(a) (b) SHOW LIST OF ACCOUNTSLINK TO TEXTPrepare the entries that would be recorded by Sandhill 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 ExplanationDebitCredit(a) (b) SHOW LIST OF ACCOUNTS On October 1, 2017, Whispering Equipment Company sold a pecan-harvesting machine to Valco Brothers Farm, Inc. In lieu of a cash payment Valco Brothers Farm gave Arden a 2-year, $150,800, 10% note (a realistic rate of interest for a note of this type). The note required interest to be paid annually on October 1. Whispering’s financial statements are prepared on a calendar-year basis.
Assuming Valco Brothers Farm fulfills all the terms of the note, prepare the necessary journal entries for Whispering Equipment Company for the entire term of the note. Assume that reversing entries are not made on January 1, 2018 and January 1, 2019. (Record journal entries in the order presented in the problem. 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.)
DateAccount Titles and ExplanationDebitCredit 10/1/1712/31/1710/1/1812/31/1810/1/19 10/1/1712/31/1710/1/1812/31/1810/1/19 10/1/1712/31/1710/1/1812/31/1810/1/19 10/1/1712/31/1710/1/1812/31/1810/1/19 10/1/1712/31/1710/1/1812/31/1810/1/19 (To record the collection of interest) (To record the collection of the note)
