The following information applies to the questions displayed below On January 1, 2014, Boston Company completed the following transactions (use a 7 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 $115,000 for seven years Will pay $6,000 interest at the end of each year and repay the $115,000 at the end of the 7th year b Established a plant addition fund of $490,000 to be available at the end of year 8 A single sum that will grow to $490,000 will be deposited on January 1, 2014 c Agreed to pay a severance package to a discharged employee The company will pay $75,000 at the end of the first year, $112,500 at the end of the second year, and $150,000 at the end of the third year d Purchased a $170,000 machine on January 1, 2014, and paid cash, $34,000 A five year note payable is signed for the balance The note will be paid in five equal year end payments starting on December 31, 2014 Required 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 Rogers Company completed the following transactions during 2014 The annual accounting period ends December 31, 2014 Jan 8 Purchased merchandise for resale on account at an invoice cost of $14,860 assume a periodic inventory system 17 Paid January 8 invoice Apr 1 Borrowed $35,000 from National Bank for general use executed a 12 month, 8 percent interest bearing note payable June 3 Purchased merchandise for resale on account at an invoice cost of $17,420 July 5 Paid June 3 invoice Aug 1 Rented a small office in a building owned by the company and collected six months rent in advance amounting to $6,000 (Record the collection in a way that will not require an adjusting entry at year end ) Dec 20 Received a $100 deposit from a customer as a guarantee to return a large trailer borrowed for 30 days Dec 31 Determined wages of $9,500 earned but not yet paid on December 31 (disregard payroll taxes) Required 1 Prepare journal entries for each of these transactions (If no entry is required for a transaction event, select No journal entry required in the first account field Do not round your intermediate calculations ) Purchased merchandise for resale on account at an invoice cost of $14,860 assume a periodic inventory system Jan 08 January 17 Paid January 8 invoice April 01 Borrowed $35,000 from National Bank for general use executed a 12 month, 8 percent interest bearing note payable June 03 Purchased merchandise for resale on account at an invoice cost of $14,860 assume a periodic inventory system Paid January 8 invoice Borrowed $35,000 from National Bank for general use executed a 12 month, 8 percent interest bearing note payable Purchased merchandise for resale on account at an invoice cost of $17,420 Paid June 3 invoice Rented a small office in a building owned by the company and collected six months rent in advance amounting to $6,000 (Record the collection in a way that will not require an adjusting entry at year end ) Received a $100 deposit from a customer as a guarantee to return a large trailer borrowed for 30 days Determined wages of $9,500 earned but not yet paid on December 31 (disregard payroll taxes) 2 Prepare the adjusting entry required on December 31, 2014 (If no entry is required for a transaction event, select No journal entry required in the first account field Do not round your intermediate calculations ) Record the adjusting entry required on December 31 (journal entry) 3 Show how all of the liabilities arising from these transactions are reported on the balance sheet at December 31, 2014 (Do not round your intermediate calculations ) 4 For each transaction, state whether cash flow from operating activities is increased or decreased (Select NE if there is no effect ) Transaction effect January 8 Jan 17 April 1 June 3 July 5 Aug 1 Dec 20 Dec 31 wages Dec 31 interest

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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 7 percent annual interest

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

On January 1, 2014, Boston Company completed the following transactions (use a 7 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.)

Borrowed $115,000 for seven years. Will pay $6,000 interest at the end of each year and repay the $115,000 at the end of the 7th year.

Established a plant addition fund of $490,000 to be available at the end of year 8. A single sum that will grow to $490,000 will be deposited on January 1, 2014.

Agreed to pay a severance package to a discharged employee. The company will pay $75,000 at the end of the first year, $112,500 at the end of the second year, and $150,000 at the end of the third year.

Purchased a $170,000 machine on January 1, 2014, and paid cash, $34,000. A five-year note payable is signed for the balance. The note will be paid in five equal year-end payments starting on December 31, 2014.

Required:

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?

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?

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Rogers Company completed the following transactions during 2014. The annual accounting period ends December 31, 2014.

Jan.

Purchased merchandise for resale on account at an invoice cost of $14,860; assume a periodic inventory system.

Paid January 8 invoice.

Apr.

Borrowed $35,000 from National Bank for general use; executed a 12-month, 8 percent interest-bearing note payable.

June

Purchased merchandise for resale on account at an invoice cost of $17,420.

July

Paid June 3 invoice.

Aug.

Rented a small office in a building owned by the company and collected six months rent in advance amounting to $6,000. (Record the collection in a way that will not require an adjusting entry at year-end.)

Dec.

Received a $100 deposit from a customer as a guarantee to return a large trailer borrowed for 30 days.

Dec 31 Determined wages of $9,500 earned but not yet paid on December 31 (disregard payroll taxes).

Required:

Prepare journal entries for each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations.)

Purchased merchandise for resale on account at an invoice cost of $14,860; assume a periodic inventory system. Jan. 08

January 17 Paid January 8 invoice

April 01 Borrowed $35,000 from National Bank for general use; executed a 12-month, 8 percent interest-bearing note payable.

June 03

Purchased merchandise for resale on account at an invoice cost of $14,860; assume a periodic inventory system.

Paid January 8 invoice.

Borrowed $35,000 from National Bank for general use; executed a 12-month, 8 percent interest-bearing note payable.

Purchased merchandise for resale on account at an invoice cost of $17,420.

Paid June 3 invoice.

Received a $100 deposit from a customer as a guarantee to return a large trailer borrowed for 30 days.

Determined wages of $9,500 earned but not yet paid on December 31 (disregard payroll taxes).

Prepare the adjusting entry required on December 31, 2014. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations.)

Record the adjusting entry required on December 31. (journal entry)

Show how all of the liabilities arising from these transactions are reported on the balance sheet at December 31, 2014. (Do not round your intermediate calculations.)

4.	For each transaction, state whether cash flow from operating activities is increased or decreased. (Select "NE" if there is no effect.) Transaction \| effect January 8 Jan 17 April 1 June 3 July 5 Aug 1 Dec 20 Dec 31 wages Dec 31 interest