Problem 7-8 On December 31, 2017, Buffalo Inc. rendered services to Beghun Corpo
ID: 2580333 • Letter: P
Question
Problem 7-8 On December 31, 2017, Buffalo Inc. rendered services to Beghun Corporation at an agreed price of $122,459, accepting $48,000 down and agreeing to accept the balance in four equal installments of $24,000 receivable each December 31, An assumed interest rate of 11% 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 Amortzation Cash Received Interest Revenue Carrying Amount of Note Date 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 SHOW LIST OF ACCOUNTS LINK TO TEXTExplanation / Answer
December 31, 2017
Schedule of Note Discount Amortization
In the books of Buffalo Inc.
To record the sale on December 31, 2017:
On December 31, 2018:
Date Cash Received Interest Revenue Carrying Amount of Note $ $ $ 12/31/17 48,000 - 74,459 12/31/18 24,000 8,190 58,649 12/31/19 24,000 6,451 41,100 12/31/20 24,000 4,521 21,621 12/31/21 24,000 2,379 -