Part A On January 1, 2018, XYZ Co. provides goods to a customerwith the following payment plan: Downpayment of $500 on Jan1, 2018 $1,200 per yearstarting Dec 31, 2018 for5 years. The customernormally would be subject to 6 % interest Required: a) What is the product revenue thatis recorded by XYZ on the sale on January 1, 2018? b) What will be the interest revenue for 2018 for xYZ as a result of this transaction? Show and label all calculations. State all factors. Use PV tables from the book only Part B MOM Inc. sold product to a customeron December 31, 2018. The customer's price was "$1,000 per year for 5 years with no interest". The customerwill make annual payments of $1,000 peryear forfive years, starting December 31, 2019. The customerwould normally be subject to 8% interest based on their risk level. The cost of the product sold was $3,000 to MOM. Required: a) Calculate the revenue MOM Inc. would record on the car sale in 2018. (Show your calculations.) USE PV tables from the book only. State all factors. b) Calculate the gross profit on the product sale c) Prepare alljournal entries for 2018 and 2019 as a result of this arrangement d) What is the value of the outstanding note receivable from the customer afterthe first payment on December 31, 2019? PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 1 1- (1+) PVF-OA (n) periods 10 % 12% 15% 9 % 11% 8 % 6 % 5% 2 % 3% 4% 2V% 86957 90090 89286 91743 1.75911 1.73554 1.71252 1.69005 1.62571 2.53130 248685 2.44371 3.23972 3.16986 3.10245 3.03735 2.85498 3.88965 3.79079 3.69590 3.60478 3.35216 90909 96154 188609 2.77509 3.62990 4.45182 95238 94340 1.83339 2.67301 3.46511 4.21236 92593 97561 1.92742 97087 .98039 1.91347 1.85941 2.72325 3.54595 4.32948 1.78326 2.57710 3.31213 3.99271 1.94156 2 2.40183 2.28323 2.85602 3.76197 4.64583 2.82861 3.71710 4.57971 3 2.88388 3.80773 4.71346 4.48592 4.35526 4.23054 4.11141 3.78448 5.03295 4.86842 4.71220 4.56376 4.16042 5.53482 5.33493 5.14612 4.96764 4.48732 5.99525 5.75902 5.53705 5.32825 4.77158 6.41766 6.14457 5.88923 5.65022 5.01877 4.62288 5.20637 5.41719 4.91732 5.50813 6.34939 7.17014 5.24214 5.07569 5.78637 6.46321 7.10782 7.72173 5.60143 647199 7.32548 8.16224 8.98259 6.00205 6.73274 6.23028 7.01969 7.78611 8.53020 5.58238 6.20979 5.74664 8 7.97087 7.43533 6.80169 7.36009 6.24689 8.75206 8.11090 6.71008 6.80519 6.49506 6.20652 5.93770 5.23371 7.16073 6.81369 6.49236 6.19437 5.42062 7.48690 7.10336 6.74987 6.42355 5.58315 7.78615 7.36669 6.98187 6.62817 5.72448 8.06069 7.60608 7.19087 6.81086 5.84737 9.25262 9.95400 8.30641 8.86325 9.39357 9.89864. 9.78685 10.57534 10.25776 11.34837 10.98319 10.63496 12.10625 11.69091 11.29607 10.56312 12.84926 12.38138 11.93794 11.11839 10.37966 8.76048 7.88687 11 9.51421 7.13896 7.53608 12 9.38507 8.38384 13 14 15 9.98565 8.85268 9.29498 9.71225 7.90378 8.24424 8.55948 8.31256 7.82371 7.37916 6.97399 5.95424 8.54363 8.02155 7.54879 7.11963 6.04716 8.75563 8.20141 7.70162 7.24967 6.12797 8.95012 8.36492 7.83929 7.36578 6.19823 9.12855 8.51356 7.96333 7.46944 6.25933 16 17 13.57771 13.05500 12.56110 11.65230 10.83777 10.10590 14.29187 13.71220 13.16612 12.16567 11.27407 10.47726 8.85137 9.12164 14.99203 14.35336 13.75351 12.65930 11.68959 10.82760 15.67846 14.97889 14.32380 13.13394 12.08532 11.15812 16.35143 15.58916 14.87747 13.59033 12.46221 11.46992 18 9.37189 9.60360 9.81815 19 20 21 17.01121 16.18455 15.41502 14.02916 12.82115 11.76408 10.01680 15.93692 14.45112 13.16800 12.04158 10.20074 18.29220 17.33211 16.44361 14.85684 13.48857 12.30338 10.37106 18.91393 17.88499 16.93554 15.24696 13.79864 12.55036 10.52876 17.41315 15.62208 14.09394 12.78336 10.67478 9.29224 8.64869 8.07507 7.56200 6.31246 9.44243 8.77154 8.17574 7.64465 6.35866 9.58021 8.88322 8.26643 7.71843 6.39884 9.70661 22 23 17.65805 16.76541 8.98474 8.34814 7.78432 6.43377 24 25 9.82258 9.07704 8.42174 7.84314 6.46415 19.52346 18.42438 9.92897 9.16095 8.48806 7.89566 6.49056 26 20.12104 18.95061 17.87684 15.98277 14.37519 13.00317 10.80998 18.32703 16.32959 14.64303 13.21053 10.93516 10.02658 9.23722 8.45780 7.94255 27 20.70690 19.46401 53 5.5 28 21.28127 19.96489 18.76411 16.66306 14.89813 13.40616 11.05108 10.11613 9.30657 8.60162 7.98442 6.53351 21.84438 20.45355 19.18845 16.98371 15.14107 13.59072 11.15841 10.19828 9.36961 8.65011 8.02181 6.55088 22.39646 20.93029 19.60044 17.29203 15.37245 13.76483 11.25778 10.27365 9.42691 8.69379 805518 6.56598 29 30 31 32 22.93770 21.39541 20.00043 17.58849 15.59281 13.92909 11.34980 10.34280 9.47901 8.73315 8.08499 6.57911 23.46833 21.84918 20.38877 17.87355 15.80268 14.08404 11.43500 10.40624 9.52638 8.76860 8.11159 6.59053 23.98856 22.29188 20.76579 18.14765 16.00255 14.23023 11.51389 10.46444 9.56943 8.80054 8.13535 6.60046 24.49859 22.72379 21.13184 18.41120 1619290 14.36814 11.58593 10.51784 9.60858 8.82932 8.15656 6.60910 24.99862 23.14516 21.A8722 18.6646) 16.37419 14.49825 11.65457 10.56682 9.64416 8.85524 8.17550 6.61661 33 34 35 25.48884 23.55625 21.83225 18.90828 16.54685 14.62099 11.71719 10.61176 9.67651 8.87859 8.19241 6.62314 25.96945 23.95732 22.16724 19.14258 16.71129 14.73678 11.77518 10.65299 9.70592 8.89963 8.20751 6.62882 26.44064 24.34860 22.49246 19.36786 16.86789 14.84602 11.82887 10.69082 9.73265 8.91859 8.22099 6.63375 26.90259 24.73034 22.80822 19.58448 17.01704 14.94907 11.87858 10.72552 9.75697 8.93567 8.23303 6.63805 27.35548 25.10278 23.11477 19.79277 17.15909 15.04630 11.92461 10.75736 9.77905 8.95105 8.24378 6.64178 36 37 38 39 40 O7890 PRESENT VALUE OF 1 (PRESENT VALUE OF A SINGLE SUM) PVF (1+ (1+i) (nl 2 % periods 3 % 22% 5 % 4 % 6% 8 % 9 % 10% 11% 12% 15% 98039 96117 94232 .92385 90583 97561 97087 94260 91514 88849 86261 96156 .92456 88900 85480 82193 95238 94340 89000 83962 79209 92593 85734 .79383 73503 .68058 91743 84168 77218 70843 90909 .82645 ,75132 68301 62092 90090 81162 73119 65873 59345 89286 79719 .86957 75614 65752 57175 49718 95181 92860 .90703 3 86384 82270 78353 71178 63552 56743 4 90595 88385 5 74726 64993 88797 87056 85349 86230 83748 .81309 79031 75992 74622 .71068 67684 64461 70496 ,50663 45235 40388 36061 32197 .63017 58349 54027 59627 54703 .50187 46043 56447 53464 48166 43233 37594 32690 28426 24719 84127 66506 62741 59190 55839 51316 46651 42410 82075 80073 78120 ,78941 ,76642 .74409 73069 43393 83676 .70259 50025 39092 82035 67556 .61391 46319 42241 38554 35218 11 80426 76214 74356 72242 70138 64958 .58468 .55684 53032 52679 28748 25668 22917 20462 .18270 42888 39711 38753 35049 31728 28584 21494 12 13 78849 77303 .62460 .60057 49697 46884 44230 41727 35554 32618 31863 18691 72542 70773 .69047 68095 36770 28966 26333 .25751 23199 16253 14133 12289 14 15 75788 74301 .66112 .64186 ,57748 .50507 48102 34046 29925 27454 55526 31524 23939 20900 16 17 72845 71416 -70016 68643 .67297 .67362 .65720 62317 .53391 51337 39365 37136 35034 45811 29189 27027 25187 16312 14564 13004 11611 10367 21763 19785 .18829 10687 09293 08081 60502 43630 41552 23107 .16963 18 .64117 .62553 58739 .57029 55368 49363 25025 21199 .19449 17843 17986 15282 13768 12403 19 47464 39573 33051 31180 23171 21455 16351 07027 20 .61027 45630 37689 14864 06110 21 65978 59539 53755 52189 .43883 42196 35894 34185 29416 19866 16370 15018 13778 .12641 11597 .11174 10067 09069 .08170 07361 13513 12285 .11168 10153 09230 .09256 08264 07379 06588 .05882 05313 22 58086 .64684 27751 18394 ,17032 15770 14602 .04620 04017 .03493 03038 23 63416 .62172 60953 56670 .50669 49193 47761 40573 39012 37512 32557 26180 24 -55288 31007 24698 25 53939 29530 23300 26 .59758 58586 57437 52623 .51340 46369 45019 43708 42435 36069 34682 28124 26785 25509 24295 23138 21981 20737 19563 18456 17411 13520 12519 11591 10733 .09938 10639 .09761 .08955 .08216 07537 .08391 .07628 06631 05974 05382 .04849 04368 .05252 04689 04187 03738 03338 02642 .02297 27 28 50088 33348 06934 29 01997 56311 48866 32065 .06304 05731 30 .01737 01510 55207 47674 41199 30832 31 54125 46511 45377 44270 43191 42137 39999 29646 28506 27409 22036 20987 .19987 19035 18129 .16425 15496 14619 13791 .13011 09202 .08520 07889 .07305 .06763 .06915 06344 .05820 05340 04899 05210 04736 04306 03914 03558 02980 .02661 .02376 02121 01894 03935 .03545 .03194 .02878 02592 32 01313 .01142 .00993 00864 00751 53063 38834 37703 36604 35538 33 52023 34 51003 26355 25342 35 50003 36 49022 37 48061 38 47119 39 46195 40 41109 40107 39128 38174 37243 34503 53498 32523 31575 30656 24367 17266 16444 15661 14915 14205 12274 .11579 10924 10306 .09722 .06262 05799 05369 04971 04603 .04494 .04123 .03783 03470 03235 02941 02674 02430 02210 .02335 02104 01896 01708 01538 .01691 01510 01348 .01204 01075 00653 .00568 23430 22529 21662 20829 .00494 ,00429 .00373 45289 03184 o7890
