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    Year Balance Jan.1 Interest Revenue Payment Reduction in Principle Balance Dec.31 2010 2011 2012

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    Khánh Linh Cao
    The document summarizes three methods for accounting for revenue and expenses over multiple years for a loan with an initial balance of $74,606 that was paid off by 2012. It shows the balance, interest, revenue, payment, and reduction in principal for 2010-2012. It also provides percentages of completion for revenue, expense, and profit for each year and total. Finally, it breaks down the revenue, expense, and profit for each year and total using the installment sale method, and calculates the present value of the total receivable in 2010.

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    Year Balance Jan.1 Interest Revenue Payment Reduction in Principle Balance Dec.31 2010 2011 2012

    Uploaded by

    Khánh Linh Cao
    16 views2 pages
    The document summarizes three methods for accounting for revenue and expenses over multiple years for a loan with an initial balance of $74,606 that was paid off by 2012. It shows the balance, interest, revenue, payment, and reduction in principal for 2010-2012. It also provides percentages of completion for revenue, expense, and profit for each year and total. Finally, it breaks down the revenue, expense, and profit for each year and total using the installment sale method, and calculates the present value of the total receivable in 2010.

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    The document summarizes three methods for accounting for revenue and expenses over multiple years for a loan with an initial balance of $74,606 that was paid off by 2012. It shows the balance, interest, revenue, payment, and reduction in principal for 2010-2012. It also provides percentages of completion for revenue, expense, and profit for each year and total. Finally, it breaks down the revenue, expense, and profit for each year and total using the installment sale method, and calculates the present value of the total receivable in 2010.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    16 views2 pages

    Year Balance Jan.1 Interest Revenue Payment Reduction in Principle Balance Dec.31 2010 2011 2012

    Uploaded by

    Khánh Linh Cao
    The document summarizes three methods for accounting for revenue and expenses over multiple years for a loan with an initial balance of $74,606 that was paid off by 2012. It shows the balance, interest, revenue, payment, and reduction in principal for 2010-2012. It also provides percentages of completion for revenue, expense, and profit for each year and total. Finally, it breaks down the revenue, expense, and profit for each year and total using the installment sale method, and calculates the present value of the total receivable in 2010.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 2

    year balance jan.1 interest revenue payment reduction in principle balance dec.

    31
    2010 74606 7460 30000 22540 52066
    2011 52066 5207 30000 24793 27273
    2012 27273 2727 30000 27273 0

    1. Percentage of completion
    2010 2011 2012 total
    revenue 12 72 36 120

    expense 10 60 30 100

    profit 2 12 6 20

    2. Completed contract method

    revenue 0 0 120 120

    expense 0 0 100 100

    profit 0 0 20 20

    3. Installment sale

    year revenue expense profit


    2010 sale 30000 52540 40793 11747
    22540
    interest 7460 8122 -662

    2011 sale 24793 19249 5544

    interest 5207 7934 -2727

    2012 sale 27273 21175 6098

    interest 2727 2727 0

    total 20000
    PV 2010 total PV receivable
    74606 104606

    81217 0.776409 rate = PV of total cash payment/PV of total cash receipts

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