Rate

Years
1
2
3
4
5
6
7
8
9
10

Cost
500.00
500.00
10.00
10.00
10.00
10.00
10.00
110.00
10.00
10.00

Profit Rate
5%
5%

Journal entries
Year 1
Cash
Loans payable

Year 2

Year 3

Revenue
525.00
525.00

Years

Cost

1
2
3
4
5
6
7
8
9
10

Dr
500.00

Cr
500.00

Intangible asset
Cash

500.00

Contract expenses
Intangible asset
Contract revenue

500.00
25.00

Cash
Loans payable

533.50

Intangible asset
Cash

500.00

Contract expenses
Intangible asset
Contract revenue

500.00
25.00

500.00

525.00

533.50

500.00

525.00

Intangible Asset
Cash

33.50

Cash
LP

79.24

Interest Expense

6.70%

33.50

79.24

69.2445

500.00
500.00
10.00
10.00
10.00
10.00
10.00
110.00
10.00
10.00

Interest

0
33.5
69.2445
61.15388
52.52119
43.31011
33.48189
22.99518
18.50585
7.015744

Cash

Road Opex

69.2445

10.00
Cash

Cash

10.00

200
Toll Rev

Resurfacing Expense
Resurfacing Payable

Amortization Expense
Intangible Asses

LP

200

12
12

135.44
135.44

200
Cash

Year 4

Cash
LP

200

71.15
71.15

Interest Expense
Cash

Road Opex

61.15388
61.15388

10.00
Cash

Cash

10.00

200.00
Toll Rev

Resurfacing Expense
Resurfacing Payable

Amortization Expense
Intangible Asset

200.00

14
14

135.44
135.44

LP

200.00
Cash

Year 5

Cash
LP

200.00

62.52
62.52

Interest Expense
Cash

Road Opex

52.52119
52.52119

10.00
Cash

Cash

10.00

200.00
Road Oper Rev

Resurfacing Expense
Resurfacing Payable

200.00

15
15

Amortization Expense
Intangible Asset

135.44

LP

200.00

135.44

Cash

Year 6

Cash
LP

200.00

53.31
53.31

Interest Expense
Cash

Road Opex

43.31011
43.31011

10.00
Cash

10.00

Cash

200.00
Road Oper Rev

Resurfacing Expense
Resurfacing Payable

200.00

17
17

Amortization Expense
Intangible Asset

135.44

LP

200.00

135.44

Cash

Year 7

Cash
LP

200.00

43.48
43.48

Interest Expense
Cash

Road Opex

33.48189
33.48189

10.00
Cash

Cash

10.00

200.00
Road Oper Rev

Resurfacing Expense
Resurfacing Payable

200.00

20
20

Amortization Expense
Intangible Asset

135.44

LP

200.00
Cash

135.44

200.00

Year 8

Cash
LP

133.00
133.00

Interest Expense
Cash

Road Opex

22.99518
22.99518

10.00
Cash

Cash

10.00

200.00
Road Oper Rev

Resurfacing Expense
Resurfacing Payable

Resurfacing Payable
Cash

200.00

22
22

100
100

Amortization Expense
Intangible Asset

135.44

LP

200.00

135.44

Cash

Year 9

Cash
LP

200.00

28.51
28.51

Interest Expense
Cash

Road Opex

18.50585
18.50585

10.00
Cash

Cash

10.00

200.00

Road Oper Rev

200.00

Amortization Expense
Intangible Asset

135.44

LP

200.00

135.44

Cash

Year 10

Interest Expense
Cash

Road Opex

200.00

7.015744
7.015744

10.00
Cash

Cash

10.00

200.00
Road Oper Rev

Amortization Expense
Intangible Asset

LP

200.00

135.44
135.44

78.27
Cash

78.27

Intangible Asset
Payments

0
0
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00

LP (Cash)

500
1,033.50
912.74
783.90
646.42
499.73
343.21
276.21
104.71
(78.27)

Revenue Borrowing Cost Amortization

525.00
525.00
33.50
135.44
135.44
135.44
135.44
135.44
135.44
135.44
135.44

525.00
1,083.50
948.06
812.63
677.19
541.75
406.31
270.88
135.44
-

I/S

Cash Flow

Revenue
Contract cost/Road Interest
Opex Expense
Road Reurfacing Exp Amort

525.00
525.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00

500.00
500.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00

69.2445
61.15388
52.52119
43.31011
33.48189
22.99518
18.50585
7.015744

12
14
15
17
20
22

135.44
135.44
135.44
135.44
135.44
135.44
135.44
135.44

Net income/loss

25.00
25.00
(26.68)
(20.59)
(12.96)
(5.75)
1.08
9.57
36.06
47.55
78.27

Reciepts

200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00

Intangible AssetContract CostsInterest Expense

Net Inflow/Outflow

500.00
500.00
10.00
10.00
10.00
10.00
10.00
110.00
10.00
10.00

0
33.5
69.2445
61.15388
52.52119
43.31011
33.48189
22.99518
18.50585
7.015744

(500.00)
(533.50)
120.76
128.85
137.48
146.69
156.52
67.00
171.49
182.98