Reference no: EM13913041
On December 31, 2014, Oakbrook Inc. rendered services to Beghun Corporation at an agreed price of $104,855, accepting $41,100 down and agreeing to accept the balance in four equal installments of $20,550 receivable each December 31. An assumed interest rate of 11% is imputed.
Prepare the entries that would be recorded by Oakbrook Inc. for the sale on December 31, 2014. (Assume that the effective-interest method is used for amortization purposes.)
Prepare the entries that would be recorded by Oakbrook Inc. for the (a) receipts and (b) interest on December 31, 2015. (Assume that the effective-interest method is used for amortization purposes.)
Prepare the entries that would be recorded by Oakbrook Inc. for the (a) receipts and (b) interest on December 31, 2016. (Assume that the effective-interest method is used for amortization purposes.)
Prepare the entries that would be recorded by Oakbrook Inc. for the (a) receipts and (b) interest on December 31, 2017. (Assume that the effective-interest method is used for amortization purposes.)
Prepare the entries that would be recorded by Oakbrook Inc. for the (a) receipts and (b) interest on December 31, 2018. (Assume that the effective-interest method is used for amortization purposes.)
About the portfolio of securities
: Norton Co. purchased the following portfolio of securities during 2014 and reported the following balances at December 31, 2014. No sales occurred during 2014. What amount should Norton Co. report on its income statement related to these securities?
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: On December 31, 2014, Oakbrook Inc. rendered services to Beghun Corporation at an agreed price of $104,855, accepting $41,100 down and agreeing to accept the balance in four equal installments of $20,550 receivable each December 31. An assumed intere..
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