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On December 31, 2014 Barker Inc. provided consulting services to Carr Company at an agreed price of $141,513. Barker accepted $30,000 down and agreed to accept the balance in four equal installments of $30,000 to be received quarterly (March 31, 2015; June 30, 2015; September 30, 2015; and December 31, 2015). An assumed annual interest rate of 12% is imputed.
Instructions:
Using Excel, prepare the amortization schedule and then record all required journal entries that would be made by Barker on the following dates (a) December 31, 2014 (b) March 31, 2015; (c) June 30, 2015; (d) September 30, 2015; and (e) December 31, 2015.
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