Assignment: Excel Spreadsheet Project
On December 31, 2016, Carson Company rendered services to Lincoln Corporation at an agreed price of $125,939, accepting $50,000 down and agreeing to accept the balance in three equal annual installments of $30,000, to be received every December 31, starting December 31, 2017. An assumed interest rate of 9% is imputed.
Instructions:
(a) Prepare an amortization schedule using excel. Use the effective-interest method for amortization purposes.
(b) Prepare the journal entries required on each of the following dates: December 31, 2016; December 31, 2017; December 31, 2018; and December 31, 2019.
