The following information applies to the questions displayed below On January 1, 2014, Boston Company completed the following transactions (use a 9 percent annual interest rate for all transactions) (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided ) a Borrowed $118,000 for six years Will pay $10,620 interest at the end of each year and repay the $118,000 at the end of the 6th year b Established a plant addition fund of $520,000 to be available at the end of year 6 A single sum that will grow to $520,000 will be deposited on January 1, 2014 c Agreed to pay a severance package to a discharged employee The company will pay $86,000 at the end of the first year, $123,500 at the end of the second year, and $149,000 at the end of the third year Purchased a $300,000 machine on January 1, 2014, and paid cash, $39,000 A six year note payable is signed for the balance The note will be paid in six equal year end payments starting on December 31, 2014 1 In transaction ( a ), determine the present value of the debt 2 a In transaction ( b ), what single sum amount must the company deposit on January 1, 2014 2 b What is the total amount of interest revenue that will be earned 3 In transaction ( c ), determine the present value of this obligation 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 Purchased a $300,000 machine on January 1, 2014, and paid cash, $39,000 A six year note payable is signed for the balance The note will be paid in six equal year end payments starting on December 31, 2014 1 In transaction ( a ), determine the present value of the debt 2 a In transaction ( b ), what single sum amount must the company deposit on January 1, 2014 2 b What is the total amount of interest revenue that will be earned 3 In transaction ( c ), determine the present value of this obligation 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 a Borrowed $118,000 for six years Will pay $10,620 interest at the end of each year and repay the $118,000 at the end of the 6th year b Established a plant addition fund of $520,000 to be available at the end of year 6 A single sum that will grow to $520,000 will be deposited on January 1, 2014 c Agreed to pay a severance package to a discharged employee The company will pay $86,000 at the end of the first year, $123,500 at the end of the second year, and $149,000 at the end of the third year d Purchased a $300,000 machine on January 1, 2014, and paid cash, $39,000 A six year note payable is signed for the balance The note will be paid in six equal year end payments starting on December 31, 2014

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[The following information applies to the questions displayed below.] On January 1, 2014, Boston Company completed the following transactions (use a 9 percent annual interest

[The following information applies to the questions displayed below.]

On January 1, 2014, Boston Company completed the following transactions (use a 9 percent annual interest rate for all transactions): (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)

a.	Borrowed $118,000 for six years. Will pay $10,620 interest at the end of each year and repay the $118,000 at the end of the 6th year.
b.	Established a plant addition fund of $520,000 to be available at the end of year 6. A single sum that will grow to $520,000 will be deposited on January 1, 2014.
c.	Agreed to pay a severance package to a discharged employee. The company will pay $86,000 at the end of the first year, $123,500 at the end of the second year, and $149,000 at the end of the third year.
.	Purchased a $300,000 machine on January 1, 2014, and paid cash, $39,000. A six-year note payable is signed for the balance. The note will be paid in six equal year-end payments starting on December 31, 2014. 1. In transaction (a), determine the present value of the debt. 2-a. In transaction (b), what single sum amount must the company deposit on January 1, 2014? 2-b. What is the total amount of interest revenue that will be earned? 3. In transaction (c), determine the present value of this obligation. 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?




	Purchased a $300,000 machine on January 1, 2014, and paid cash, $39,000. A six-year note payable is signed for the balance. The note will be paid in six equal year-end payments starting on December 31, 2014. 1. In transaction (a), determine the present value of the debt. 2-a. In transaction (b), what single sum amount must the company deposit on January 1, 2014? 2-b. What is the total amount of interest revenue that will be earned? 3. In transaction (c), determine the present value of this obligation. 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?

a.	Borrowed $118,000 for six years. Will pay $10,620 interest at the end of each year and repay the $118,000 at the end of the 6th year.
b.	Established a plant addition fund of $520,000 to be available at the end of year 6. A single sum that will grow to $520,000 will be deposited on January 1, 2014.
c.	Agreed to pay a severance package to a discharged employee. The company will pay $86,000 at the end of the first year, $123,500 at the end of the second year, and $149,000 at the end of the third year.
d.	Purchased a $300,000 machine on January 1, 2014, and paid cash, $39,000. A six-year note payable is signed for the balance. The note will be paid in six equal year-end payments starting on December 31, 2014.