Exercise 10-18A (Algo) Computing bond interest and price; recording bond issuance LO C2 Citywide Company issues...
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Exercise 10-18A (Algo) Computing bond interest and price; recording bond issuance LO C2 Citywide Company issues bonds with a par value of $77,000. The bonds mature in nine years and pay 8% annual interest in semiannual payments. The annual market rate for the bonds is 6%. (Table B.1, Table B.2, Table B.3, and Table B.4) Note: Use appropriate factor(s) from the tables provided. 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the bonds' issuance. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the price of the bonds as of their issue date. Note: Round intermediate calculations to the nearest dollar amount. Table Values are Based on: Cash Flow Par (maturity) value Interest (annuity) Price of bonds n = i = 14 4.0% x Table Value Amount Present Value 0.5775 10.5631 X $ 85,000 = $ 49,088 $ 4,250 x = 44,893 $ 93,981 Exercise 10-18A (Algo) Computing bond interest and price; recording bond issuance LO C2 Citywide Company issues bonds with a par value of $77,000. The bonds mature in nine years and pay 8% annual interest in semiannual payments. The annual market rate for the bonds is 6%. (Table B.1, Table B.2, Table B.3, and Table B.4) Note: Use appropriate factor(s) from the tables provided. 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the bonds' issuance. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record the bonds' issuance. Note: Round intermediate calculations to the nearest dollar amount. No Transaction 1 1 Cash Bonds payable General Journal Premium on bonds payable < Required 1 Required 2 > Debit Credit 1,160,789 x 77,000 1,083,789 Exercise 10-18A (Algo) Computing bond interest and price; recording bond issuance LO C2 Citywide Company issues bonds with a par value of $77,000. The bonds mature in nine years and pay 8% annual interest in semiannual payments. The annual market rate for the bonds is 6%. (Table B.1, Table B.2, Table B.3, and Table B.4) Note: Use appropriate factor(s) from the tables provided. 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the bonds' issuance. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the price of the bonds as of their issue date. Note: Round intermediate calculations to the nearest dollar amount. Table Values are Based on: Cash Flow Par (maturity) value Interest (annuity) Price of bonds n = i = 14 4.0% x Table Value Amount Present Value 0.5775 10.5631 X $ 85,000 = $ 49,088 $ 4,250 x = 44,893 $ 93,981 Exercise 10-18A (Algo) Computing bond interest and price; recording bond issuance LO C2 Citywide Company issues bonds with a par value of $77,000. The bonds mature in nine years and pay 8% annual interest in semiannual payments. The annual market rate for the bonds is 6%. (Table B.1, Table B.2, Table B.3, and Table B.4) Note: Use appropriate factor(s) from the tables provided. 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the bonds' issuance. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record the bonds' issuance. Note: Round intermediate calculations to the nearest dollar amount. No Transaction 1 1 Cash Bonds payable General Journal Premium on bonds payable < Required 1 Required 2 > Debit Credit 1,160,789 x 77,000 1,083,789
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