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Business, 19.03.2020 00:18 Jackmcvay14

On December 31, 2020, Ivanhoe Inc. rendered services to Beghun Corporation at an agreed price of $115,805, accepting $44,800 down and agreeing to accept the balance in four equal installments of $22,400 receivable each December 31. An assumed interest rate of 10% is imputed.
(a) Prepare an amortization schedule. Assume that the effective-interest method is used for amortization purposes.
(b) Prepare the entries that would be recorded by Ivanhoe Inc. for the sale on December 31, 2020.
(c) Prepare the entries that would be recorded by Ivanhoe Inc. for the sale on December 31, 2020.
(d) Prepare the entries that would be recorded by Ivanhoe Inc. for the (a) receipts and (b) interest on December 31, 2021.

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