On December 31, 2008, Menachem Inc. rendered services to Begin Corporation at an agreed price of $91,844.10,

Question:

On December 31, 2008, Menachem Inc. rendered services to Begin Corporation at an agreed price of $91,844.10, accepting $36,000 down and agreeing to accept the balance in four equal installments of $18,000 receivable each December 31. An assumed interest rate of 11% is imputed.

Instructions

Prepare the entries that would be recorded by Menachem Inc. for the sale and for the receipts and interest on the following dates.

(a) December 31, 2008.

(b) December 31, 2009.

(d) December 31, 2011.

(e) December 31, 2012.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...