Requirements:

$1)$ Using the data below, record all the required journal entries for the following problem in appropriate professional Excel format $($i$.$e$.,$ use cell referencing and formulas, no hard coding numbers$).$

To support your journal entries, use the effective interest method of amortization using a table.

$2)$ All account titles and subtotals should be added using cell referencing.

Grading: $10$ possible points

This spreadsheet contains macros which will provide real time feedback on EACH cell that you enter in the Solution. There are $64$ cells which get graded, and your score on this assignment will be calculated based upon the $\%$ of the $64$ cells that are completed correctly.

Tips:

$1)$ The present value of the note receivable should be calculated using the Excel PV formula in the journal entry

$2)$ Amounts should all be rounded to the nearest dollar $($no cents$)$

$3)$ Amounts from the Amortization Table should be used to populate the journal entries when possible $($otherwise use amounts in the Data provided$).$

$4)$ If you get a yellow cell after entering data, be sure to look for the "tip" provided by the tool in the row at the top of your spreadsheet. Often this is a formatting issue.

Solution

Data Big Bad Accounting Corp's General Ledger Amortization Table

On December $31,2025,$ Big Bad Accounting Corp. provided consulting services to Tecky Inc. Tecky gave a $2-$year, $$200,000,6\%$ note. Tecky had previously sought a bank loan and was told the bank would charge Tecky $9\%$ interest. The note issued by Big Bad Accounting required interest to be paid annually on December $31.$ Big Bad Accounting Corp's financial statements are prepared on a calendar$-$year basis. Date DR$/$CR Account Title Amount Date Cash Interest Received Interest Revenue Discount Amortized Carrying Value N$/$R

Loan Amount $$200,00012/31/2025$ DR Note Receivable $200,00012/31/2025$

Term of Loan $($in years$)2$ CR Discount on Note Receivable $12/31/2026$ $$12,000$

Stated rate $6\%$ CR Revenue $12/31/202712,000200,000$

Effective rate $9\%$ To record interest revenue and amortize discount $$24,000$

Annual interest received $$12,00012/31/2026$ DR Cash $12,000$

DR Discount on Note Receivable

Possible account titles and terms to be used $($cell reference from here, some terms CR Interest Revenue

$($cell reference from here, some will be used more than once and some not at all$)$ To record interest revenue and amortize discount

Carrying Value N$/$R $12/31/2027$ DR Cash $12,000$

Cash DR Discount on Note Receivable

Cash Interest Received CR Interest Revenue

CR To record interest revenue and amortize discount

Date DR Cash $200,000$

Discount Amortized CR Note Receivable $200,000$

Discount on Note Receivable To record principal repayment

DR

Interest Revenue

Note Receivable

Premium Amortized

Premium on Note Receivable

Revenue

To record interest revenue and amortize discount

To record principal repayment

$12/31/2025$

$12/31/2026$

$12/31/2027$

$2$ years

$$200,000$

$6\%$

$9\%$Requirements:

$1)$ Using the data below, record all the required journal entries for the following problem in appropriate professional Excel format $($i$.$e$.,$ use cell referencing and formulas, no hard coding numbers$).$

To support your journal entries, use the effective interest method of amortization using a table.

$2)$ All account titles and subtotals should be added using cell referencing.

Grading: $10$ possible points

This spreadsheet contains macros which will provide real time feedback on EACH cell that you enter in the Solution. There are $64$ cells which get graded, and your score on this assignment will be calculated based upon the $\%$ of the $64$ cells that are completed correctly.

Tips:

$1)$ The present value of the note receivable should be calculated using the Excel PV formula in the journal entry

$2)$ Amounts should all be rounded to the nearest dollar $($no cents$)$

$3)$ Amounts from the Amortizati