PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 1- (1+i) PVF-OA =- i (n) periods 15 % 12% 11% 6 % 8% 10% 9% 2V2 % 5% 3% 4% 2% 89286 1.69005 1.62571 86957 90090 90909 95238 1.85941 2.72325 91743 1.75911 1.73554 1.71252 2.53130 2.48685 2.44371 2.40183 2.28323 3.23972 3.16986 3.10245 3.88965 3.79079 3.69590 3.60478 3.35216 .94340 1.83339 2.67301 3.46511 92593 1.78326 97087 96154 .98039 1.94156 2.88388 97561 1.91347 1.88609 2 1.92742 2.85602 2.82861 2.77509 2.57710 3 3.03735 285498 3.71710 4.57971 3.62990 4.45182 3.54595 3.31213 3.99271 3.80773 3.76197 4 4.32948 4.64583 4.21236 5 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 6.41766 6.14457 5.88923 5.65022 5.01877 5.24214 6.00205 6.73274 5.07569 4.91732 5.58238 6.20979 5.50813 5.41719 4.62288 6 5.60143 6.23028 5,78637 5.20637 5.74664 7 6.47199 6.34939 7.17014 7.97087 8.75206 7.01969 7.78611 8.53020 6.46321 8 7.32548 5.32825 4.77158 8.16224 7.43533 7.10782 6.80169 6.24689 8.11090 7.72173 7.36009 6.71008 10 8.98259 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 7.78615 7.36669 6.988187 6.62817 5.72448 8.06069 7.60608 7.19087 6.81086 5.84737 9.51421 9.78685 9.25262 8.76048 8.30641 7.88687 7.13896 7.53608 7.90378 11 9.95400 8.86325 12 13 10.57534 10.25776 9.38507 8.38384 6.42355 5.58315 11.34837 10.98319 10.63496 12.10625 11.69091 11.29607 10.56312 12.84926 12.38138 11.93794 11.11839 10.37966 9.98565 9.39357 8.85268 9.29498 9.71225 14 9.89864 8.24424 8.55948 15 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 7.46944 6.25933 13.05500 12.56110 11.65230 10.83777 10.10590 14.29187 13.71220 13.16612 12.16567 11.27407 10.47726 14.35336 13.75351 12.65930 11.68959 10.82760 8.85137 9.12164 9.37189 16 17 18 13.57771 14.99203 15.67846 14.97889 14.32380 16.35143 15.58916 14.87747 13.59033 12.46221 11.46992 19 13.13394 12.08532 11.15812 9.60360 9.81815 20 9.12855 8.51356 7.96333 15.41502 14.02916 12.82115 11.76408 10.01680 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 8.98474 8.34814 7.78432 6.43377 9.82258 9.07704 8.42174 7.84314 6.46415 21 17.01121 16.18455 17.65805 16.76541 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 19.52346 18.42438 17.41315 15.62208 14.09394 12.78336 10.67478 22 23 24 25 26 27 28 29 9.92897 9.16095 8.48806 7.89566 6.49056 18.32703 16.32959 14.64303 13.21053 10.93516 10.02658 9.23722 8.45780 7.94255 6.51353 18.76411 16.66306 14.89813 13.40616 11.05108 10.11613 9.30657 8.60162 7.98442 6.53351 6.55088 22.39646 20.93029 19.60044 17.29203 15.37245 13.76483 11.25778 10.27365 9.42691 8.69379 8.05518 6.56598 20.12104 18.95061 20.70690 19.46401 21.28127 19.96489 17.87684 15.98277 14.37519 13.00317 10.80998 21.84438 20.45355 19.18845 16.98371 15.14107 13.59072 11.15841 10.19828 9.36961 8.65011 8.02181 30 22.93770 21.39541 20.00043 17.58849 15.59281 13.92909 11.34980 10.34280 9.47901 8.73315 8.08499 6.57911 31 23.46833 21.84918 20.38877 17.87355 15.80268 14.08404 11.43500 10.40624 9.52638 8.76860 8.11159 6.59053 32 33 34 23.98856 22.29188 24.49859 22.72379 21.13184 18.41120 1619290 14.36814 11,58693 10.51784 9.60858 8.82932 8.15656 6.60910 24.99862 23.14516 21.48722 18.66461 16.37419 14.49825 11.65457 10.56682 9.64416 8.85524 20.76579 18.14765 16.00255 14.23023 11.51389 10.46444 9.56943 8.80054 8.13535 6.60046 35 8.17550 6.61661 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 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 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 8.20751 6.62882 11.87858 10.72552 9.75697 8.93567 8.23303 6.63805 40 PRESENT VALUE OF 1 (PRESENT VALUE OF A SINGLE SUM) 1 PV (1+i) (n) periods 2% 2V2 % 3% 4% 5% 6% 8% 10% 9% 11% 12% 15% .98039 97561 95181 .92860 ,90595 .88385 97087 96156 .92456 88900 85480 95238 ,90703 86384 82270 .78353 94340 89000 83962 79209 74726 .92593 .91743 90909 90090 .89286 .86957 2 .96117 94260 .91514 88849 .85734 .79383 .73503 68058 82645 .75132 68301 62092 84168 81162 79719 75614 .65752 57175 .49718 3 .94232 92385 90583 77218 70843 64993 73119 .65873 71178 .63552 56743 5 86261 82193 59345 6 88797 86230 83748 81309 .78941 76642 .74409 79031 75992 .73069 74622 71068 67684 64461 .61391 ,50663 45235 40388 36061 32197 .70496 .66506 62741 59190 63017 .58349 54027 50025 46319 59627 54703 50187 46043 42241 .56447 51316 46651 42410 .53464 48166 43393 39092 43233 37594 32690 7 87056 84127 8 85349 82075 80073 78120 83676 70259 .67556 .28426 24719 10 82035 55839 .35218 38554 11 12 13 14 15 80426 72242 70138 68095 .66112 76214 74356 72542 .64958 .62460 60057 58468 .55684 53032 50507 28748 25668 22917 20462 18270 .52679 49697 42888 39711 36770 34046 38753 35554 32618 35049 31863 28966 31728 28584 21494 78849 77303 75788 74301 18691 16253 46884 44230 41727 25751 23199 70773 69047 .57748 55526 29925 27454 .26333 23939 .14133 64186 48102 31524 20900 12289 16 .72845 67362 .62317 60502 58739 .57029 55368 .53391 .51337 .45811 39365 29189 25187 23107 .18829 16312 14564 13004 11611 10367 21763 19785 .10687 09293 08081 17 71416 .65720 43630 37136 35034 27027 .25025 .23171 -16963 18 19 20 .70016 64117 49363 41552 39573 37689 21199 17986 .15282 .68643 .62553 47464 33051 .19449 17843 .16351 .13768 .07027 67297 61027 45630 31180 21455 .14864 12403 .06110 21 22 23 24 25 .65978 59539 58086 .56670 55288 53939 .53755 .52189 -50669 .49193 43883 42196 .40573 39012 35894 29416 .19866 .18394 .16370 .13513 .12285 09256 11174 .10067 09069 .08170 .05313 .04620 .04017 .03493 .03038 6 584 34185 27751 15018 .08264 .63416 32557 26180 24698 23300 17032 13778 .12641 .11597 .11168 .07379 .06588 .05882 .62172 31007 29530 15770 .10153 60953 47761 .37512 14602 .09230 07361 26 27 59758 58586 52623 46369 45019 43708 36069 34682 28124 .26785 25509 21981 13520 10639 .08391 .07628 06934 .06631 05252 .02642 .51340 20737 12519 11591 10733 09761 .05974 .04689 .02297 .01997 .01737 28 57437 56311 55207 50088 33348 .19563 08955 ,08216 05382 04849 04187 03738 29 48866 42435 32065 30832 24295 18456 17411 06304 .05731 30 47674 41199 23138 09938 .07537 04368 03338 .01510 31 32 33 34 35 54125 46511 39999 38834 37703 29646 22036 16425 .09202 .06915 .06344 ,05210 .03935 02980 01313 .53063 45377 28506 20987 15496 08520 04736 03545 03194 02661 01142 52023 51003 44270 27409 26355 19987 19035 14619 .07889 .05820 05340 04306 03914 .02376 02121 .00993 00864 43191 36604 35538 13791 .07305 06763 02878 .50003 42137 25342 18129 13011 .04899 .03558 .02592 .01894 00751 36 37 38 39 40 49022 48061 41109 40107 34503 24367 .17266 ,16444 .12274 06262 .05799 04494 .03235 .02335 .02104 .01896 .01691 00653 33498 32523 23430 22529 21662 11579 10924 04123 ,03783 02941 01510 00568 47119 .39128 15661 05369 .02674 .02430 01348 .01204 .00494 46195 38174 37243 31575 14915 14205 10306 .04971 .03470 01708 .00429 00373 .45289 30656 20829 .09722 .04603 .03184 .02210 .01538 .01075 Part A On January 1, 2018, XYZ Co. provides goods to a customer with the following payment plan: Downpayment of $500 on Jan 1, 2018 $1,200 per year starting Dec 31, 2018 for5 years. The customer normally would be subject to 6% interest. Required: a) What is the product revenue that is 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 V 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. (Showyour calculations.) USE PV tables from the book only. State all factors. b) Calculate the gross profit on the product sale. c) Prepare all journal entries for 2018 and 2019 as a result of this arrangement d) What is the value of the outstanding note receivable from the customer after the first payment on December 31, 2019? PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 1- (1+i) PVF-OA =- i (n) periods 15 % 12% 11% 6 % 8% 10% 9% 2V2 % 5% 3% 4% 2% 89286 1.69005 1.62571 86957 90090 90909 95238 1.85941 2.72325 91743 1.75911 1.73554 1.71252 2.53130 2.48685 2.44371 2.40183 2.28323 3.23972 3.16986 3.10245 3.88965 3.79079 3.69590 3.60478 3.35216 .94340 1.83339 2.67301 3.46511 92593 1.78326 97087 96154 .98039 1.94156 2.88388 97561 1.91347 1.88609 2 1.92742 2.85602 2.82861 2.77509 2.57710 3 3.03735 285498 3.71710 4.57971 3.62990 4.45182 3.54595 3.31213 3.99271 3.80773 3.76197 4 4.32948 4.64583 4.21236 5 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 6.41766 6.14457 5.88923 5.65022 5.01877 5.24214 6.00205 6.73274 5.07569 4.91732 5.58238 6.20979 5.50813 5.41719 4.62288 6 5.60143 6.23028 5,78637 5.20637 5.74664 7 6.47199 6.34939 7.17014 7.97087 8.75206 7.01969 7.78611 8.53020 6.46321 8 7.32548 5.32825 4.77158 8.16224 7.43533 7.10782 6.80169 6.24689 8.11090 7.72173 7.36009 6.71008 10 8.98259 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 7.78615 7.36669 6.988187 6.62817 5.72448 8.06069 7.60608 7.19087 6.81086 5.84737 9.51421 9.78685 9.25262 8.76048 8.30641 7.88687 7.13896 7.53608 7.90378 11 9.95400 8.86325 12 13 10.57534 10.25776 9.38507 8.38384 6.42355 5.58315 11.34837 10.98319 10.63496 12.10625 11.69091 11.29607 10.56312 12.84926 12.38138 11.93794 11.11839 10.37966 9.98565 9.39357 8.85268 9.29498 9.71225 14 9.89864 8.24424 8.55948 15 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 7.46944 6.25933 13.05500 12.56110 11.65230 10.83777 10.10590 14.29187 13.71220 13.16612 12.16567 11.27407 10.47726 14.35336 13.75351 12.65930 11.68959 10.82760 8.85137 9.12164 9.37189 16 17 18 13.57771 14.99203 15.67846 14.97889 14.32380 16.35143 15.58916 14.87747 13.59033 12.46221 11.46992 19 13.13394 12.08532 11.15812 9.60360 9.81815 20 9.12855 8.51356 7.96333 15.41502 14.02916 12.82115 11.76408 10.01680 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 8.98474 8.34814 7.78432 6.43377 9.82258 9.07704 8.42174 7.84314 6.46415 21 17.01121 16.18455 17.65805 16.76541 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 19.52346 18.42438 17.41315 15.62208 14.09394 12.78336 10.67478 22 23 24 25 26 27 28 29 9.92897 9.16095 8.48806 7.89566 6.49056 18.32703 16.32959 14.64303 13.21053 10.93516 10.02658 9.23722 8.45780 7.94255 6.51353 18.76411 16.66306 14.89813 13.40616 11.05108 10.11613 9.30657 8.60162 7.98442 6.53351 6.55088 22.39646 20.93029 19.60044 17.29203 15.37245 13.76483 11.25778 10.27365 9.42691 8.69379 8.05518 6.56598 20.12104 18.95061 20.70690 19.46401 21.28127 19.96489 17.87684 15.98277 14.37519 13.00317 10.80998 21.84438 20.45355 19.18845 16.98371 15.14107 13.59072 11.15841 10.19828 9.36961 8.65011 8.02181 30 22.93770 21.39541 20.00043 17.58849 15.59281 13.92909 11.34980 10.34280 9.47901 8.73315 8.08499 6.57911 31 23.46833 21.84918 20.38877 17.87355 15.80268 14.08404 11.43500 10.40624 9.52638 8.76860 8.11159 6.59053 32 33 34 23.98856 22.29188 24.49859 22.72379 21.13184 18.41120 1619290 14.36814 11,58693 10.51784 9.60858 8.82932 8.15656 6.60910 24.99862 23.14516 21.48722 18.66461 16.37419 14.49825 11.65457 10.56682 9.64416 8.85524 20.76579 18.14765 16.00255 14.23023 11.51389 10.46444 9.56943 8.80054 8.13535 6.60046 35 8.17550 6.61661 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 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 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 8.20751 6.62882 11.87858 10.72552 9.75697 8.93567 8.23303 6.63805 40 PRESENT VALUE OF 1 (PRESENT VALUE OF A SINGLE SUM) 1 PV (1+i) (n) periods 2% 2V2 % 3% 4% 5% 6% 8% 10% 9% 11% 12% 15% .98039 97561 95181 .92860 ,90595 .88385 97087 96156 .92456 88900 85480 95238 ,90703 86384 82270 .78353 94340 89000 83962 79209 74726 .92593 .91743 90909 90090 .89286 .86957 2 .96117 94260 .91514 88849 .85734 .79383 .73503 68058 82645 .75132 68301 62092 84168 81162 79719 75614 .65752 57175 .49718 3 .94232 92385 90583 77218 70843 64993 73119 .65873 71178 .63552 56743 5 86261 82193 59345 6 88797 86230 83748 81309 .78941 76642 .74409 79031 75992 .73069 74622 71068 67684 64461 .61391 ,50663 45235 40388 36061 32197 .70496 .66506 62741 59190 63017 .58349 54027 50025 46319 59627 54703 50187 46043 42241 .56447 51316 46651 42410 .53464 48166 43393 39092 43233 37594 32690 7 87056 84127 8 85349 82075 80073 78120 83676 70259 .67556 .28426 24719 10 82035 55839 .35218 38554 11 12 13 14 15 80426 72242 70138 68095 .66112 76214 74356 72542 .64958 .62460 60057 58468 .55684 53032 50507 28748 25668 22917 20462 18270 .52679 49697 42888 39711 36770 34046 38753 35554 32618 35049 31863 28966 31728 28584 21494 78849 77303 75788 74301 18691 16253 46884 44230 41727 25751 23199 70773 69047 .57748 55526 29925 27454 .26333 23939 .14133 64186 48102 31524 20900 12289 16 .72845 67362 .62317 60502 58739 .57029 55368 .53391 .51337 .45811 39365 29189 25187 23107 .18829 16312 14564 13004 11611 10367 21763 19785 .10687 09293 08081 17 71416 .65720 43630 37136 35034 27027 .25025 .23171 -16963 18 19 20 .70016 64117 49363 41552 39573 37689 21199 17986 .15282 .68643 .62553 47464 33051 .19449 17843 .16351 .13768 .07027 67297 61027 45630 31180 21455 .14864 12403 .06110 21 22 23 24 25 .65978 59539 58086 .56670 55288 53939 .53755 .52189 -50669 .49193 43883 42196 .40573 39012 35894 29416 .19866 .18394 .16370 .13513 .12285 09256 11174 .10067 09069 .08170 .05313 .04620 .04017 .03493 .03038 6 584 34185 27751 15018 .08264 .63416 32557 26180 24698 23300 17032 13778 .12641 .11597 .11168 .07379 .06588 .05882 .62172 31007 29530 15770 .10153 60953 47761 .37512 14602 .09230 07361 26 27 59758 58586 52623 46369 45019 43708 36069 34682 28124 .26785 25509 21981 13520 10639 .08391 .07628 06934 .06631 05252 .02642 .51340 20737 12519 11591 10733 09761 .05974 .04689 .02297 .01997 .01737 28 57437 56311 55207 50088 33348 .19563 08955 ,08216 05382 04849 04187 03738 29 48866 42435 32065 30832 24295 18456 17411 06304 .05731 30 47674 41199 23138 09938 .07537 04368 03338 .01510 31 32 33 34 35 54125 46511 39999 38834 37703 29646 22036 16425 .09202 .06915 .06344 ,05210 .03935 02980 01313 .53063 45377 28506 20987 15496 08520 04736 03545 03194 02661 01142 52023 51003 44270 27409 26355 19987 19035 14619 .07889 .05820 05340 04306 03914 .02376 02121 .00993 00864 43191 36604 35538 13791 .07305 06763 02878 .50003 42137 25342 18129 13011 .04899 .03558 .02592 .01894 00751 36 37 38 39 40 49022 48061 41109 40107 34503 24367 .17266 ,16444 .12274 06262 .05799 04494 .03235 .02335 .02104 .01896 .01691 00653 33498 32523 23430 22529 21662 11579 10924 04123 ,03783 02941 01510 00568 47119 .39128 15661 05369 .02674 .02430 01348 .01204 .00494 46195 38174 37243 31575 14915 14205 10306 .04971 .03470 01708 .00429 00373 .45289 30656 20829 .09722 .04603 .03184 .02210 .01538 .01075 Part A On January 1, 2018, XYZ Co. provides goods to a customer with the following payment plan: Downpayment of $500 on Jan 1, 2018 $1,200 per year starting Dec 31, 2018 for5 years. The customer normally would be subject to 6% interest. Required: a) What is the product revenue that is 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 V 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. (Showyour calculations.) USE PV tables from the book only. State all factors. b) Calculate the gross profit on the product sale. c) Prepare all journal entries for 2018 and 2019 as a result of this arrangement d) What is the value of the outstanding note receivable from the customer after the first payment on December 31, 2019