中级会计分期付款

AmericanFoodServices,Inc.,acquiredapackagingmachinefromBartonCorporation.BartonandBartoncompletedconstructionofthemachineonJanuary1,2011.Inpaymentforthe$4millionmachine,AmericanFoodServicesissuedafour-yearinstallmentnotetobepaidinfourequalpaymentsattheendofeachyear.Thepaymentsincludeinterestattherateof10%.1.PreparethejournalentryforAmericanFoodServicespurchaseofthemachineonJanuary1,2011.2.Prepareanamortizationscheduleforthefour-yeartermoftheinstallmentnote.3.PreparethejournalentryforthefirstinstallmentpaymentonDecember31,2011.4.WhatthetotalamountofpaymentonDecember31,2014?1.January1,2011Machinery4,000,000Notespayable4,000,0002.Amortizationschedule$4,000,000÷3.16987=$1,261,881amount(fromTable4)installmentofloann=4,i=10%paymentDec.31CashEffectiveDecreaseinOutstandingPaymentInterestDebtBalance（10%xOutstandingBalance）4,000,00020111,261,88110*(4,000,000)=400,000861,8813,138,119201220121,261,88110*(3,138,119)=313,812948,0692,190,05020131,261,88110*(2,190,050)=219,0051,042,8761,147,17420141,261,88110*(1,147,174)=114,707*1,147,1740•3.December31,2011–Interestexpense(10%xoutstandingbalance)400,000Notepayable(difference)861,881Cash(paymentdeterminedabove)1,261,881•4.December31,20131,261,881*4=5047524December31,20114,000,000/4+4,000,000*10%=1,400,000December31,20124,000,000/4+(4,000,000-4,000,000/4)*10%=1,300,000December31,20134,000,000/4+(4,000,000-4,000,000/4*2)*10%=1,200,000December31,20144,000,000/4+(4,000,000-4,000,000/4*3)*10%=1,100,000Dec.31CashEffectiveDecreaseinOutstandingPaymentInterestDebtBalance（10%xOutstandingBalance）4,000,00020111,400,00010%*(4,000,000)=400,0001,000,0003,000,00020121,300,00010%*(3,000,000)=300,0001,000,0002,000,00020131,200,00010%*(2,000,000)=200,0001,000,0001,000,00020141,100,00010%*(1,000,000)=100,000*1,000,0000•January1,2011–Machinery4,000,000Notespayable4,000,000•December31,2011–Interestexpense(10%xoutstandingbalance)400,000Notepayable(difference)1,000,000Cash(paymentdeterminedabove)1,400,000EndofChapter9THANKS~