Excel Spreadsheet Project

ACC

Excel Spreadsheet Project

On December 31, 2012, Barker Inc. provided consulting services to Carr Company at an agreed price of $151,121. Barker accepted $60,000 down and agreed to accept the balance in four equal installments of $30,000 to be received each December 31, beginning December 31, 2013. An assumed interest rate of 12% is imputed.

Instructions:

Using Excel, prepare the amortization schedule and then record all required journal entries that would be made by Barker on the following dates (a) December 31, 2012; (b) December 31, 2013; (c) December 31, 2014; (d) December 31, 2015; and (e) December 31, 2016.

Students will be assessed on the following skills (1) correct data entered, (2) correct and accessible formulas, (3) column headings and labels, (4) titles merged and centered, and (5) spreadsheet formatting and printing.

tips:

http://www.accountingcoach.com/present-value-of-an-ordinary-annuity/explanation/8

Here are a few tips.

• Total Payment (Cash) are the $30,000 payments
• Interest is calculated using the PV x 12% interest rate
• The balance will be reduced by the principle payment.
• You can adjust the last year interest payment (interest revenue) for rounding errors.