The Pond Company sold some machinery to the Vista Company on January 1,2014,for which the cash selling price was $500,000.Vista entered into an installment sales contract with Pond at an interest rate of 10%.The contract required payments of $114,804 a year over six years,with the first payment due on December 31,2014.
Required:
Prepare an amortization schedule for the first two scheduled payments that shows (a)what portion of each payment will be included in interest income,and (b)the loan balance after each payment is made.

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The Answer of The Pond Company sold some machinery to the Vista Company on January 1,2014,for which the cash selling price was $500,000.Vista entered into an installment sales contract with Pond at an interest rate of 10%.The contract required payments of $114,804 a year over six years,with the first payment due on December 31,2014.
Required:
Prepare an amortization schedule for the first two scheduled payments that shows (a)what portion of each payment will be included in interest income,and (b)the loan balance after each payment is made.

The Pond Company Sold Some Machinery to the Vista Company