 Justice for everyone: An installment note case with varied payments and inappropriate interest amortizationRalph E. Welton and Jeremy M. Vinson Journal of Accounting Education, 2024, vol. 68, issue C Abstract: Accountants are frequently called upon to use their financial and analytical skills to assist other professionals. In this case, you will take on the role of an accountant called upon to assist an attorney who is providing free legal advice to a client. The case, based on actual events, involves inappropriate amortization by a lender of a 15-year installment note. Additionally, the borrower missed multiple payments and made extra payments attempting to “catch-up.” After 22 years, the borrower is still making payments and wonders when payoff will be achieved. This case provides you the opportunity to review and correct an amortization schedule for an installment note, thereby gaining an understanding of the impact of compounding interest and missed payments on the life of the note. Additionally, the case provides the opportunity to communicate your findings in a memo to a professional who is not an accountant. Keywords: Time value of money; Monthly interest amortization; Installment note; Intermediate financial accounting (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:joaced:v:68:y:2024:i:c:s0748575124000253 DOI: 10.1016/j.jaccedu.2024.100909 Access Statistics for this article Journal of Accounting Education is currently edited by Natalie Tatiana Churyk More articles in Journal of Accounting Education from Elsevier |
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