Recording note receivable and interest example: On December 31, 2025, Vincent Company rendered building restoration services to Sylvie Corporation 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.
Prepare the entries that would be recorded by Vincent for (a) the sale in exchange for cash and the note receivable (prepare an amortization schedule), and (b) the cash receipts and interest on the following dates. (Assume that the effective-interest method is used for amortization purposes.)
1. December 31, 2026
2. December 31, 2029