Luke Company sold some machinery to View Company on January 1, 2017, for which the cash selling price was $758,200. View entered into an installment sales contract with Lake at a 10% interest rate. The contract required payments of $200,000 a year over five years with the first payment due on December 31, 2017.  Required: Prepare an amortization schedule that shows what portion of each $200,000 payment will be shown as interest income over the period 2017-2021.

Question

Luke Company sold some machinery to View Company on January 1, 2017, for which the cash selling price was $758,200. View entered into an installment sales contract with Lake at a 10% interest rate. The contract required payments of $200,000 a year over five years with the first payment due on December 31, 2017. 

Required:

Prepare an amortization schedule that shows what portion of each $200,000 payment will be shown as interest income over the period 2017-2021. 

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Other

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: how do you calculate the net income

A: Revenues: Revenues are earnings from operations of a business. The operating activities are sale of ...

Q: Novak Company’s record of transactions for the month of April was as follows. Purchases   Sale...

A: Inventory Valuation:"LIFO" stands for last-in, first-out, meaning that the recently purchased invent...

Q: My text book is  Hospitality Industry Financial Accounting (4th edition). I am in chapter 10 -- INVE...

A: Effect of errors on cost of goods sold (COGS) and net income:

Q: Marigold Corp., organized in 2020, has the following transactions related to intangible assets. ...

A: A patent is the conceding of a right to the of a property by the government to the inventor.Goodwill...

Q: If Morton Company expects to sell VCR's at $100 a unit with variable costs of $60 per unit and DVD's...

A: Formula to compute the weighted contribution margin:

Q: Im confused on how to work this problem

A: 1.Step 1: Calculate the contribution per unit.

Q: Marten Corp. has a limited number of machine hours available to produce its three products A11, B22,...

A: Calculate the contribution margin.

Q: My text book is  Hospitality Industry Financial Accounting (4th edition). I am in chapter 9 -- RECEI...

A: Account receivable: The amount of money to be received by a company for the sale of goods and servic...

Q: Analyze your company’s liability section of the comparative balance sheets.  Has the composition of ...

A:  Change in the composition of current and long-term liabilities of Walmart’s balance sheet over a pe...

Q: John and Joan pay $16,500 of qualified adoption expenses in 2018 to finalize the adoption of a quali...

A: Qualified adoption expenses: - Adoption fees- Court and attorney fees- Travelling expenses- Other ex...

Q: On January 1st, 2018, Dr. Marcie Cousins established Health-Wise Medical, a medical practice organiz...

A: Net income:The net income is the profit generated in the business over particular period of time. Ne...

Q: Clayborn Company' bank reconciliation as of May 31 is shown below. Bank balance $15,800 Book balance...

A: The only adjusting entry that will be passed is bank service fees for $25 charged by the bank for th...

Q: The Putney Company reports the following information:  Sales $76,500 Cost of direct materials u...

A: Hence, the product costs is $35,000. It obtained by the addition of the cost of direct material, dep...

Q: ) Provide an accurate, full and complete explanation and implication of the information presented in...

A: Click to see the answer

Q: Notes Payable Renchen Company, which manufactures steel tubing and casing for automobile production,...

A: 1. prepare the journal entry to record the borrowing transaction:

Q: The dollar-value LIFO method was adopted by Windsor Corp. on January 1, 2017. Its inventory on that ...

A: Calculation of amount of the inventory at December 31, 2017, under the dollar-value LIFO method: Thu...

Q: The Blossom Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on...

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for you...

Q: If a taxpayer does not have enough tax liability to use all the available adoption credit, the unuse...

A: Adoption Credit: Adoption of a child needs certain basic expenses like court and attorney fees and s...

Q: My text book is  Hospitality Industry Financial Accounting (4th edition). I am in chapter 11 -- PROP...

A: Capital expenditure: It refers to the amount spent on acquiring, maintaining, and improving the fixe...

Q: Sheffield Corp.can produce and sell only one of the following two products: Contribution Oven Hours ...

A: Compute contribution margin for the product Muffins as shown below:

Q: Only need to do part B of the question

A: Required journal entries:

Q: how do you determine when goodwill will be written off under the impairment rules

A: Goodwill:Goodwill is the good reputation developed by a company over years. This is recorded as an i...

Q: Franklin Company's bank reconciliation as of August 31 is shown below. Bank balance $14,237 Book bal...

A: Bank reconciliation statement: Bank statement is prepared by the bank. The company maintains its own...

Q: Crane Company exchanged equipment used in its manufacturing operations plus $3,300 in cash for simil...

A: (1) Prepare journal entries for Crane Co. and Cheyenne Co. to record exchange, if exchange lacks com...

Q: im unsure how to work this problem

A: Click to see the answer

Q: During 2019, Basler Manufacturing produced 60,000 units and sold 55,000 for $10 per unit. Variable m...

A: The product cost per unit has been calculated by adding the variable and fixed manufactring cost per...

Q: Problem 9-97BEntries for and Financial Statement Presentation of a Note Griddley Company borrowed $2...

A: Click to see the answer

Q: Skylar is single and earns $410,000 in salary during 2018. What is the amount of 0.9 percent Medicar...

A: Employers are required to withhold additional Medicare tax, above the 1.45% Medicare tax rate, at a ...

Q: The following information is available for the first month of operations of Bahadir Company, a manuf...

A: Cost of goods sold has been calculated by taking the gross profit subtracted from the sales.

Q: September 30   2022   2021 Accounts receivable for member dues   $19,400   $12,900 Unearn...

A: Unearned revenue is amount acquired by an individual or organization for an assistance or item that ...

Q: Exercise 9-03 a On March 1, 2022, Sandhill Co. acquired real estate, on which it planned to constru...

A: Cost of land: Cost of land includes the cost of demolishing old warehouse, attorney fees of land and...

Q: Sophia & More Company sells clothing, shoes and accessories at a city location near you. Informa...

A: Income Statement as per Variable Costing

Q: Just part B

A: Working:

Q: Break-Even Sales Currently, the unit selling price of a product is $390, the unit variable cost is $...

A: Break even sales is the dollar amount of revenue at which a business earns a profit of zero i.e. No ...

Q: Operating Leverage Snellville Co. reports the following data: Sales $483,900 Variable costs 329,100 ...

A: Degree of Operating Leverage:  Degree of operating leverage is an efficiency ratio which evaluates t...

Q: Munoz Corporation incurs the following annual fixed costs: Item Cost $ 62,000 Depreciation Officers'...

A: In order to compute the fixed cost per unit, the total annual fixed cost needs to be determined. The...

Q: Federal Income Tax WithholdingBob Browning's weekly gross earnings for the present week were $2,770....

A: Calculate the amount of federal income tax with holdings:

Q: company's inventory records report the following in November of the current year:        Beginn...

A: Under LIFO inventory system, the goods received last are despatched first. Gross Profit is computed ...

Q: Linburgh Inc manufactures model airplanes and repair kits. The planes account for 80% of the sales m...

A: Compute total contribution margin using sales mix for the two products as shown below:

Q: Target Profit Trailblazer Company sells a product for $210 per unit. The variable cost is $90 per un...

A: a. Determine break-even point in sales units.

Q: Salt Company manufactures products J, K, and L in a joint process. The company incurred $480,000 of ...

A: Joint Cost represent the value of cost incurred till the products are spilt. These costs are allocat...

Q: My text book is  Hospitality Industry Financial Accounting (4th edition). I am in chapter 10 -- INVE...

A: Weighted average method helps in valuation of stock and decides the average cost of stock based on t...

Q: Number 1 An analysis of the accounts of Williams Company reveals the following manufacturing cost da...

A: (a)Prepare cost of goods manufactured schedule: 

Q: Silver Company purchased a machine for use in the business. The purchase price was $55,000 and the r...

A: The cost related to an asset which is to be used by the company for a longer period of time is to be...

Q: My text book is Hospitality Industry Financial Accounting (4th edition). I am in chapter 9 -- RECEIV...

A: Determine the amount of expected loss as at December 31, 20x3.

Q: Concord Corporation owns equipment that cost $64,200 when purchased on January 1, 2017. It has been ...

A: Straight line method of calculating depreciation is a strategy for computing deterioration and amort...

Q: Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $399,970. The unit selling price...

A: Break even sales is the dollar amount of revenue at which a business earns a profit of zero i.e. No ...

Q: (determining merchandise amounts-periodic) Fill the amounts that are missing.                       ...

A: Fill the amounts that are missing:2016:

Q: Jan.  1   Retired a piece of machinery that was purchased on January 1, 2010. The machine cost $64,7...

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. Th...

Q: 8. Homework Chapter 10

A: Common stock refers to the shares of a company which are issued by company to general public for gen...