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1. Notes Receivable Journal Entries On December 31, 2010, Oakbrook Inc. rendered services to Begin Corporation 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. Prepare the entries that would be recorded by Oakbrook Inc. 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, 2010. (b) December 31, 2011.(c) December 31, 2012.(d) December 31, 2013.(e) December 31, 2014.
Identified and measured economic events should be recorded in order. In every transaction, at least parties are involved.
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After examining the statement, Moy said to Stein, "Sol, the statement seems to be well done, but what I need is why I don't have enough cash to pay my bills this month. You show that I earned $120,000 in 2010, but I have only $24,000 in the bank. ..
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