On December 31, 2019, Regent plc rendered services to Begin Group 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.
Instructions
Prepare the entries that would be recorded by Regent plc 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, 2019.
b. December 31, 2020.
c. December 31, 2021.
d. December 31, 2022.
e. December 31, 2023.