Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [The following information applies to the questions displayed below.] On January 1, Boston Company completed the following transactions (use a 7% annual interest

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Required information [The following information applies to the questions displayed below.] On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): ( EV of S1, PV of S1. FVA of S1, and PVA of (\$1) Note: Use appropriate factor(s) from the tables provided. a. Promised to pay a fixed amount of $7,300 at the end of each year for eight years and a one-time payment of $117,600 at the end of the 8 th year. b. Established a plant remodeling fund of $491,950 to be available at the end of Year 9. A single sum that will grow to $491,950 will be deposited on January 1 of this year. c. Agreed to pay a severance package to a discharged employee. The company will pay $76,300 at the end of the first year, $113,800 at the end of the second year, and $151,300 at the end of the third year. d. Purchased a $176,500 machine on January 1 of this year for $35,300cash. A flve-year note is signed for the batance. The note will be paid in five equal year-end payments starting on December 31 of this year. 3. In transaction (c), determine the present value of this obligation. Note: Round your intermediate calculations and final answer to nearest whole dollar. Required information [The following information applies to the questions dispiayed below.] On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): ( EV of S1, PV of \$1, EVA of \$1, and PVA of \$1) Note: Use appropriate factor(s) from the tables provided. a. Promised to pry a fixed amount of $7,300 at the end of each year for eight years and a one-time payment of $117,600 at the end of the 8 th year. b. Established a plant remodeling fund of $491,950 to be available at the end of Year 9. A single sum that will grow to $491,950 will be deposited on January 1 of this year. c. Agreed to pay a severance package to a discharged employee. The company will pay $76,300 at the end of the first year, $113,800 at the end of the second year, and $151,300 at the end of the third year: d. Purchased a $176,500 machine on January 1 of this year for $35,300cash. A five-year note is signed for the balance. The note will be paid in five equal year-end payments starting on December 31 of this year. 4-a. In transaction (d). what is the amount of each of the equal annual payments that will be paid on the note? 4-b. What is the total amount of interest expense that will be incurred? Complete this question by entering your answers in the tabs below. In transaction (d), what is the amount of each of the equal annual payments that will be paid on the note? Note: Round your answer to nearest whole dollar. Required information [The following information applies to the questions displayed below] On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): ( EV of \$1. PV of \$1. EVA of.\$1, and PVA of \$1) Note: Use appropriate factor(s) from the tables provided. a. Promised to pay a fixed amount of $7,300 at the end of each year for eight years and a one-time payment of $117,600 at the end of the 8th year. b. Established a plant remodeling fund of $491,950 to be avallable at the end of Year 9 . A single sum that will grow to $491,950 will be deposited on January 1 of this year. c. Agreed to pay a severance package to a discharged employee. The company will pay $76,300 at the end of the first year, $113,800 at the end of the second year, and $151,300 at the end of the third year. d. Purchased a $176,500 machine on January 1 of this year for $35,300cash. A five-year note is signed for the balance. The note will be paid in five equal year-end payments starting on December 31 of this year. 3. In transaction (c), determine the present value of this obligation. Note: Round your intermediate calculations and final answer to nearest whole dollar. Required information [The following information applies to the questions displayed below.] On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): ( FV of \$1. PV of \$1. FVA of \$1, and PVA of \$1) Note: Use appropriate factor(s) from the tables provided. a. Promised to pay a fixed amount of $7,300 at the end of each year for eight years and a one-time payment of $117,600 at the end of the 8 th year. b. Established a plant remodeling fund of $491,950 to be avallable at the end of Year 9. A single sum that will grow to $491,950 will be deposited on January 1 of this year. c. Agreed to pay a severance package to a discharged employee. The company will pay $76,300 at the end of the first year, $113,800 at the end of the second year, and $151,300 at the end of the third year. d. Purchased a $176,500 machine on January 1 of this year for $35,300 cash. A five-year note is signed for the balance. The note will be paid in five equal year-end payments starting on December 31 of this year. Required: 1. In transaction (a), determine the present value of the debt. Note: Round your intermediate calculations and final answer to nearest whole dollar. Required information [The following information applies to the questions displayed below.] On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): ( FV of \$1, PV of \$1, FVA of \$1, and PVA of \$1) Note: Use appropriate factor(s) from the tables provided. a. Promised to pay a fixed amount of $7,300 at the end of each year for eight years and a one-time payment of $117,600 at the end of the 8 th year. b. Established a plant remodeling fund of $491,950 to be available at the end of Year 9. A single sum that will grow to $491,950 will be deposited on January 1 of this year. c. Agreed to pay a severance package to a discharged employee. The company will pay $76,300 at the end of the first year, $113,800 at the end of the second year, and $151,300 at the end of the third year. d. Purchased a $176,500 machine on January 1 of this year for $35,300 cash. A five-year note is signed for the balance. The note will be paid in five equal year-end payments starting on December 31 of this year. 2-a. In transaction (b), what single sum amount must the company deposit on January 1 of this year? 2-b. What is the total amount of interest revenue that will be earned? Complete this question by entering your answers in the tabs below. In transaction (b), what single sum amount must the company deposit on January 1 of this year? Note: Round your answer to nearest whole dollar. Required information [The following information applies to the questions displayed below] On January 1, Boston Company completed the following transactions (use a 7% annual interest fate for all transactions): ( FV of \$1. PV of \$1. EVA of \$1, and PVA of \$1) Note: Use appropriate factor(s) from the tables provided. a. Promised to pay a fixed amount of $7,300 at the end of each year for eight years and a one-time payment of $117,600 at the end of the 8 th year. b. Established a plant remodeling fund of $491,950 to be avallable at the end of Year 9. A single sum that will grow to $491,950 will be deposited on January 1 of this year. c. Agreed to pay a severance package to a discharged employee. The company will pay $76,300 at the end of the first year, $113,800 at the end of the second year, and $151,300 at the end of the third year. d. Purchased a $176,500 machine on January 1 of this year for $35,300 cash. A flve-year note is signed for the balance. The note will be paid in five equal year-end payments starting on December 31 of this year. 4-a. In transaction (d), what is the amount of each of the equal annual payments that will be paid on the note? 4-b. What is the total amount of interest expense that will be incurred? Complete this question by entering your answers in the tabs below. In transaction (d), what is the amount of each of the equal annual payments that will be paid on the note? Note: Round your answer to nearest whole dollar

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

What has been the effectiveness of Head Start?

Answered: 1 week ago