Exercise 10-18A (Algo) Computing bond interest and price; recording bond issuance LO C2

Citywide Company issues bonds with a par value of $78,000 The bonds mature in eight years and pay 11% annual interest in semiannual payments. The annual market rate for the bonds is 8%. (Table B.1. Table 1.2. Table 8.3, and Table Bit)

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

Complete this question by entering your answers in the tabs below.

Required

Required 2

Compute the price of the bonds as of their lesue date

Hote Hound intermediate calculations to the nearest dollar amount.

Table Values are Daved on

Par (maturity) val

Interest Cannuity)

Price of bonds

Present Value

Required 2 >