On January 1, Boston Company completed the following transactions (use a 79% annual interest rate for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, Boston Company completed the following transactions (use a 79% annual interest rate for all transactions): ( EV of $1. PV of $1. EVA of $1, and PVA of $) (Use the appropriate factor(s) from the tables provided.) a. Promised to pay a fixed amount of $7,700 at the end of each year for eight years and a one-time payment of $118,400 at the end of the 8th year. b. Established a plant remodeling fund of $492,550 to be available at the end of Year 9. A single sum that will grow to $492,550 will be deposited on January 1 of this year. C. Agreed to pay a severance package to a discharged employee. The company will pay $76,700 at the end of the first year, $114,200 at the end of the second year, and $151,700 at the end of the third year. d. Purchased a $178,500 machine on January 1 of this year for $35,700 cash. A five-year note is signed for the balance. The note will be p 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? (Round your answer to nearest whole dollar.) Amount to deposit 2-b. What is the total amount of interest revenue that will be earned? (Round your answer to nearest whole dollar.) Interest revenue On January 1, Boston Company completed the following transactions (use a 79% annual interest rate for all transactions): ( EV of $1. PV of $1. EVA of $1, and PVA of $) (Use the appropriate factor(s) from the tables provided.) a. Promised to pay a fixed amount of $7,700 at the end of each year for eight years and a one-time payment of $118,400 at the end of the 8th year. b. Established a plant remodeling fund of $492,550 to be available at the end of Year 9. A single sum that will grow to $492,550 will be deposited on January 1 of this year. C. Agreed to pay a severance package to a discharged employee. The company will pay $76,700 at the end of the first year, $114,200 at the end of the second year, and $151,700 at the end of the third year. d. Purchased a $178,500 machine on January 1 of this year for $35,700 cash. A five-year note is signed for the balance. The note will be p 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? (Round your answer to nearest whole dollar.) Amount to deposit 2-b. What is the total amount of interest revenue that will be earned? (Round your answer to nearest whole dollar.) Interest revenue
Expert Answer:
Related Book For
Financial Accounting
ISBN: 978-0078025556
8th edition
Authors: Robert Libby, Patricia Libby, Daniel Short
Posted Date:
Students also viewed these accounting questions
-
On January 1, 2014, Shannon Company completed the following transactions (assume a 10 percent annual interest rate): a. Bought a delivery truck and agreed to pay $60,000 at the end of three years. b....
-
On January 1, 2014, Boston Company completed the following transactions (use a 7 percent annual interest rate for all transactions): a. Borrowed $115,000 for seven years. Will pay $6,000 interest at...
-
On January 1, 2014, Boston Company completed the following transactions (use a 8 percent annual interest rate for all transactions): (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the...
-
The following sequences of bits (rightmost bit first) appear at the inputs of a 4-bit parallel adder. Determine the resulting sequence of bits on each output. A1 1 0 0 1 A2 1 1 1 0 A3 0 0 0 0 A4 1 0...
-
Race Corporation has 420,000 shares of $5 par-value common stock issued and outstanding. Record the following entries into the general journal for Race: 201X July 2 Declared a cash dividend of $0.75...
-
Spot-On Contractors, Inc. provided the following information for the current years construction activity.
-
How often do you think boards should evaluate their own performance? Why?
-
Oxy Corp. is negotiating with the Wick Construction Co. for the renovation of the Oxy corporate head quarters. Wick, the owner of the Wick Construction Co., is also one of the five members of the...
-
"The use of Information Technology in Supply Chain Management Systems" What is the relevance for today's managers?
-
Calculate the number of days for the workshops. 11 In cell E5, enter a formula to calculate the number of days for the first workshop. Add 1 to the results to include the total number of days,...
-
Your friend is working as a camp counselor and he is in charge of organizing activities for a set of junior high school age campers. One of his plans is the following mini-triathlon exercise. Each...
-
For 1 5 years, Maria has owned and operated a seaside bakery and caf called The Beachsider. Each morning, customers line up on the boardwalk in front of the building and enjoy fresh coffee and...
-
The Situational Environs Demand and demand trends. (What is the forecast demand for the product: is it growing or declining? Who is the decision maker? The purchase agent? How, when, where, what, and...
-
Please explain this question using Apple as the company in question. Select a company that sells products or services that a college student would buy. Go to the library and/or search on-line...
-
Assignment: Application: Porter's Five Competitive Forces A key component of strategic analysis and planning is the evaluation of a company's competitive advantage (referred to by some as competitive...
-
Below is an example of what an answer should look like if you had been asked to provide information on the Process element of the extended marketing mix. What is ' process' ? Jones (2009) states...
-
Which seek to relate this point of view for political purposes, have been edited. This is an ethics course, and the politics are not part of this discussion. The author correctly reminds the reader...
-
Selected condensed data taken from a recent statement of financial position of Morino Ltd. are as follows. MORINO LTD. Statement of Financial Position (partial) Other current assets...
-
Ramirez Company is completing the information processing cycle at its fiscal year-end, December 31, 2015. Following are the correct balances at December 31, 2015, for the accounts both before and...
-
A recent annual report for Target contained the following information (dollars in thousands) at the end of its fiscal year: A footnote to the financial statements disclosed that uncollectible...
-
Garrett Company had the following activities for the year ended December 31, 2015: Sold land that cost $20,000 for $20,000 cash; purchased $181,000 of equipment, paying $156,000 in cash and signing a...
-
Create the spreadsheet on page 493 with formulas to calculate the total depre ciation expense and to display the correct values in the columns: Age, Depreciation Rate, and Depreciation Expense. Hint:...
-
The ABC Company has collected the following data concerning performance in its manufacturing plant: Required a. Prepare a traditional performance report (comparing actual to budget). Which processes...
-
Task: Use Excel and the Solver add-in to explore the effect of various resource constraints on the optimal product mix. a. Read the article Boost Profits With Excel, by James A. Weisel in the...
Study smarter with the SolutionInn App