ACC 106: SAS 10

Amortization table under Lump Sum Payment: Non-interest bearing not

Date Interest Income Unearned Interest

Jan 1, 20x1 288,220

Dec 31, 20x1 85,414 202,806

Dec 31, 20x2 95,663 107,143

Dec 31, 20x3 107,143 -

Amortization table under Installment Payment: Non-interest bearing not

Date Collection Interest Income

Jan 1, 20x1
91,120
Dec 31, 20x1 250,000
72,055
Dec 31, 20x2 250,000
50,702
Dec 31, 20x3 250,000
26,786
Dec 31, 20x4 250,000
240,663

Total interest income This the CURRENT

PORTION of the note on
240,663 intial bal. unearned Dec. 31, 20x1
interest income

Carrying amount as of Dec. 31, 20x1

Current portion 177,945
Noncurrent portion 422,513
Carrying amount of NR 600,458

Outstanding face amount 750,000

Carrying amount of NR 600,458

Unearned Interest 149,542

income
 Amortization table under Installment Payment: Non-interest bearing not

Date Collection Interest Income

Jan 1, 20x1
200,000 50,757
Jul 1, 20x1

Dec 31, 20x1 200,000 43,295

200,000 35,460
Jul 1, 20x2
200,000 27,232
Dec 31, 20x2
200,000 18,594
Jul 1, 20x3
200,000 9,524
Dec 31, 20x3
ment: Non-interest bearing note

Present Value Face amount 1,000,000

Multiply by:
711,780 PV of 1 @12%,n=3 0.711780 0.711780
Preaent value of NR 711,780
797,194

892,857

1,000,000

ment: Non-interest bearing note

Amortization Present Value

Annual Installment (1M/4) 250,000
759,337 Multiply by:
PV of an ord. annuity
of 1 @12%,n=4 3.3037349
158,880 600,458 Preaent value of NR 759,337
177,945 422,513

199,298 223,214

223,214 0

This the NONCURRENT

PORTION of the note on
s the CURRENT Dec. 31, 20x1
RTION of the note on
. 31, 20x1
ment: Non-interest bearing note

Amortization Present Value

Semi- Annual Install. (1.2M/6) 200,000
Multiply by:
1,015,138 PV of an ord. annuity
of 1 @5%,n=6 5.075692
149,243 865,895 Preaent value of NR 1,015,138

156,705 709,190

164,540 544,650

172,768 371,882

181,406 190,476

190,476 -
3.037349
5.075692