User Account

All Pages

Determine the present value of the debt

Assignment Help Accounting Basics
Reference no: EM133056769

Question - On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions):

-Borrowed $115,200 for eight years. Will pay $6,100 interest at the end of each year and repay the $115,200 at the end of the 8th year.

-Established a plant remodeling fund of $490,150 to be available at the end of Year 9. A single sum that will grow to $490,150 will be deposited on January 1 of this year.

-Agreed to pay a severance package to a discharged employee. The company will pay $75,100 at the end of the first year, $112,600 at the end of the second year, and $150,100 at the end of the third year.

-Purchased a $170,500 machine on January 1 of this year for $34,100 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.

Q1: In transaction (a), determine the present value of the debt.

Q2: In transaction (b), what single sum amount must the company deposit on January 1 of this year What is the total amount of interest revenue that will be earned?

Q3: In transaction (c), determine the present value of this obligation.

Q4: In transaction (d), what is the amount of each of the equal annual payments that will be paid on the note? What is the total amount of interest expense that will be incurred?

Reference no: EM133056769

Questions Cloud

Thinking about data visualization : When thinking about data visualization, it is important to understand regular expressions in data analytics.
Compute the weighted average flotation cost : Lee Corp. uses the following sources of capital to finance its investment project: (17%) DEBT: 140,000 units of 15-year 9% coupon bonds that are currently selli
What is the depreciation : Your company is considering a new project whose data are shown below. What is the Depreciation each year related to new project?
Academic integrity and academic dishonesty sections : Identify two key elements of the catalog's Academic Integrity and Academic Dishonesty sections
Determine the present value of the debt : The company will pay $75,100 at the end of the first year, $112,600 at the end of the second year, Determine the present value of the debt
Assignment on option trading strategy : Jacob wrote one call option and one put option on FFC Corp shares. These two options have the same exercise volume and expiration date, but different exercise
Determining the market price of copper : Jack entered into the long side of a forward contract on copper with Cindy (who was on the short side). Both agreed to a cash settlement instead of a physical d
Briefly describe each of the planning functions : Describe the four department groups and their purposes. Briefly describe each of the planning functions. Explain importance of information systems management
Calculate the depreciation expense for the first year : Question - Jacob Manufacturing purchased a new truck on April 1, 2005 for $30,000. Calculate the depreciation expense for the first year

Reviews

Write a Review

Accounting Basics Questions & Answers

  Identity and explain the assertion most at risk

Identity and explain the assertion most at risk. Outline the two key reasons why accounts payable is at risk of material misstatement.

  How much more income tax will song pay

Song earns $125,000 taxable income as an interior designer. How much more income tax will she pay assuming that the income effect is descriptive?

  Compute the corporate-level built-in gains tax

Matulis, Inc., a C corporation, owns a single asset with a basis of $334,400 and a fair market value of $802,560. Compute the corporate-level built-in gains tax

  How much of the joint cost will be assigned to product

Joint products A and B emerge from common processing that costs $108 000 and yields 3.200 units of Product A and 2000 units of Product B Product A.

  Prepare a product margin report for one job that involves

prepare a product margin report for one job that involves painting 400 square meters and has direct materials cost of

  Prepare monthly cash budgets for January and March

According to a credit agreement with its bank, Kayak requires a minimum cash balance of $40,000. Prepare monthly cash budgets for January and March

  Prepare the journal entry to record montys payroll

Monty Corporation's weekly payroll of $34,000 included FICA taxes withheld of $2, 601, federal taxes. Prepare the journal entry to record Monty's payroll.

  The plant manager has the plant controller prepare a

one of eastvacos business segments involves the manufacturing of three types of book binders. the profit margin on the

  Determine percentage of total personnel department services

Determine the percentage of total Personnel Department services that was provided to the Payroll Department. Determine the percentage of total Payroll Department services that was provided to the Personnel Department. Prepare a schedule showing Perso..

  Determine what fortnightly amount she could receive

Assess Ethel's eligibility for the aged pension at 1 July 2020 and determine what fortnightly amount she could receive. Show all working

  Record the first interest payment in the appropriate fund

On January 1, 2019, a Salty Beach City sold $1,000,00. Record first interest payment in the appropriate fund journal and in the governmental activities journal.

  What is the purpose of a petty cash fund

What is the purpose of a petty cash fund? How does it operate? What types of controls should be in place to safeguard these funds

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd