P7.8 (LO4) (Notes Receivable Journal Entries) On December 31, 2019, Regent plc rendered services to Begin Group at an agreed price of £102,049, accepting £40,000 down and agreeing to accept the balance in four equal installments of £20,000 receivable each December 31. An assumed interest rate of 11% is imputed. Instructions Prepare the entries that would be recorded by Regent plc for the sale and for the receipts and interest on the following dates. (Assume that the effective-interest method is used for amortization purposes.) a. December 31, 2019. b. December 31, 2020. c. December 31, 2021. d. December 31, 2022. e. December 31, 2023.
P7.8 (LO4) (Notes Receivable Journal Entries) On December 31, 2019, Regent plc rendered services to Begin Group at an agreed price of £102,049, accepting £40,000 down and agreeing to accept the balance in four equal installments of £20,000 receivable each December 31. An assumed interest rate of 11% is imputed. Instructions Prepare the entries that would be recorded by Regent plc for the sale and for the receipts and interest on the following dates. (Assume that the effective-interest method is used for amortization purposes.) a. December 31, 2019. b. December 31, 2020. c. December 31, 2021. d. December 31, 2022. e. December 31, 2023.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Intermediate Financial Accounting - Receivables
P7.8 (LO4) (Notes Receivable Journal Entries) On December 31, 2019, Regent plc
rendered services to Begin Group at an agreed price of £102,049, accepting £40,000
down and agreeing to accept the balance in four equal installments of £20,000
receivable each December 31. An assumed interest rate of 11% is imputed.
Instructions
Prepare the entries that would be recorded by Regent plc for the sale and for the receipts and
interest on the following dates. (Assume that the effective-interest method is used for
amortization purposes.)
a. December 31, 2019.
b. December 31, 2020.
c. December 31, 2021.
d. December 31, 2022.
e. December 31, 2023.
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