There is a question about the recorded value of installment payment of fixed assets`~

The recorded value of installment fixed assets is the present value of future cash flows.

So the entry value = 500/(1 6) 300/(1 6) (1 6) 200/(1 6) (1 6) (1 6) = 906.62

Borrow

Fixed assets

906.62

Unrealized financing expenses

93.38

Loan

Long-term payables

1000

Unrealized financing expenses

93.38

Amortized using the actual interest rate in the next 3 years , recorded in financial expenses.

Beach sales in the first year (1000-93.38)*6=54.40

Beach sales in the second year

((1000-500)-(93.38- 54.40))*6=27.66

Beach sales in the first year

93.38-54.4-27.66=11.32

The entries are all

Borrow

Financial charges

Loan

Unrealized financing charges