Needing help with this question for Intermediate Accounting II

RE.14-01

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Bond Issue

On January 1, Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the effective rate is 12%. Interest is to be paid semiannually.

Prepare calculations to prove that the selling price of the bonds is $138,959.90.Click here to access the tables to use with this exercise. Round your answers to two decimal places, if necessary.

Present value of principal:
Present value of interest:
Selling price

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To FT Present Value of 1: Pnji = (1 + i)" Present Value of an Ordinary Annuity of 1: po,nji = ( 1 + i )" 1.5% 4.0% 4.5% 5.0% 5.5% 6.0% 7.0% 1.5% 4.0% 4.5% 5.0% 5.5% 6.0% 7.0% 0.985222 0.961538 0.956938 0.952381 0.947867 0.943396 0.934579 1 0.985222 0.961538 0.956938 0.952381 0.947867 0.943396 0.934579 2 0.970662 0.924556 0.915730 0.907029 0.898452 0.889996 0.873439 1.886095 1.872668 1.859410 1.846320 1.833393 1.808018 0.956317 0.888996 0.876297 0.863838 0.851614 0.839619 0.816298 1.955883 3 2.912200 2.775091 2.748964 2.723248 2.697933 2.673012 2.624316 4 0.942184 0.854804 0.838561 0.822702 0.807217 0.792094 .762895 4 3.587526 3.545951 3.505150 3.465106 3.387211 0.928260 0.821927 0.802451 0.783526 0.765134 0.747258 0.712986 3.854385 3.629895 4.782645 4.451822 4.389977 4.329477 4.270284 4.212364 4.100197 6 0.914542 0.790315 0.767896 0.746215 0.725246 0.704961 0.666342 5.697 187 5.242137 5.157872 5.075692 4.995530 4.917324 4.766540 7 0.901027 0.759918 0.734828 0.710681 0.687437 0.665057 0.622750 0.651599 0.627412 0.582012 7 6.598214 6.002055 5.892701 5.786373 5.682967 5.582381 5.389289 8 0.887711 0.730690 0.703185 0.676839 7.485925 6.732745 6.595886 6.463213 6.334566 6.209794 5.971299 0.874592 0.702587 0.672904 0.644609 0.617629 0.591898 0.543934 8.360517 7.435332 7.268790 7.107822 6.952195 6.801692 6.515232 10 0.861667 0.675564 0.643928 0.613913 0.585431 0.558395 0.508349 8.1 10896 7.912718 7.721735 7.537626 7.360087 7.023582 11 0.848933 0.649581 0.616199 0.584679 0.554911 0.526788 0.475093 10 9.222185 0.496969 0.444012 11 10.071118 8.760477 8.528917 8.306414 8.092536 7.886875 7.498674 12 0.836387 0.624597 0.589664 0.556837 0.525982 12 10.907505 9.385074 9.118581 8.863252 8.618518 8.383844 7.942686 13 0.824027 0.600574 0.564272 0.530321 0.498561 0.468839 0.414964 13 11.731532 9.985648 9.682852 9.393573 9.117079 8.852683 8.357651 14 0.811849 0.577475 0.539973 0.505068 0.472569 0.442301 0.387817 9.898641 9.589648 9.294984 8.745468 15 0.799852 0.555265 0.516720 0.481017 0.447933 0.417265 0.362446 14 12.543382 10.563123 10.222825 15 13.343233 11.118387 10.739546 10.379658 10.037581 9.712249 9.107914 16 0.788031 0.533908 0.494469 0.4581 12 0.424581 0.393646 0.338735 16 14.131264 11.652296 11.234015 10.837770 10.462162 10.105895 9.446649 17 0.776385 0.513373 0.473176 0.436297 0.402447 0.371364 0.316574 8 0.764912 0.493628 0.452800 0.415521 0.381466 0.350344 0.295864 17 14.907649 12.165669 11.707191 11.274066 10.864609 10.477260 9.763223 19 0.361579 0.276508 18 15.672561 12.659297 12.159992 11.689587 11.246074 10.827603 10.059087 0.753607 0.474642 0.433302 0.395734 0.330513 19 16.426168 13.133939 12.593294 12.085321 11.607654 11.158116 10.335595 20 0.742470 0.456387 0.414643 0.376889 0.342729 0.311805 0.258419 21 0.731498 0.438834 0.396787 0.358942 0.324862 0.294155 0.241513 20 17.168639 13.590326 13.007936 12.462210 11.950382 11.469921 10.594014 22 0.720688 0.421955 0.379701 0.341850 0.307926 0.277505 0.225713 21 17.900137 14.029160 13.404724 12.821153 12.275244 11.764077 10.835527 23 0.710037 0.405726 0.363350 0.325571 0.291873 0.261797 0.210947 22 18.620824 14.451115 13.784425 13.163003 12.583170 12.041582 11.061240 24 0.699544 0.390121 0.310068 0.276657 0.246979 23 19.330861 14.856842 14.147775 13.488574 12.875042 12.303379 11.272187 0.347703 0.197147 24 20.030405 15.246963 14.495478 13.798642 13.151699 12.550358 11.469334 25 0.689206 0.3751 17 0.332731 0.295303 0.262234 0.232999 0.184249 11.653583 26 0.679021 0.360689 0.318402 0.281241 0.248563 0.219810 0.172195 25 20.719611 1 15.622080 14.828209 14.093945 13.413933 12.783356 27 0.668986 0.346817 0.304691 0.267848 0.235605 0.207368 0.160930 26 21.398632 15.982769 15.146611 14.375185 13.662495 13.003166 11.825779 27 22.067617 16.329586 15.451303 14.643034 13.898100 13.210534 11.986709 28 0.659099 0.333477 0.291571 0.255094 0.223322 0.195630 0.150402 28 22.726717 16.663063 15.742874 14.898127 14.121422 13.406164 12.137111 29 0.649359 0.320651 0.279015 0.242946 0.21 1679 0.184557 0.140563 29 23.376076 16.983715 16.021889 15.141074 14.333101 13.590721 12.277674 30 0.639762 0.308319 0.267000 0.231377 0.200944 0.174110 0.131367 30 24.015838 17.292533 16.288889 15.372451 14.533745 13.764831 12.409041 Table 3 (concluded) Table 4 (concluded) n 8.0% 9.0% 10.0% 12.0% 14.0% 16.0% 18.0% 8.0% 9.0% 10.0% 12.0% 14.0% 16.0% 18.0% 1 0.925926 0.917431 0.909091 0.892857 0.877193 0.862069 0.847458 0.925926 0.917431 0.909091 0.892857 0.877193 0.862069 0.847 458 2 0.857339 0.841680 0.826446 0.797194 0.769468 0.743163 0.718184 0.640658 0.608631 2 1.783265 1.7591 11 1.735537 1.690051 1.646661 1.605232 1.565642 2 0793832 0.772183 0 751315 0711780 0 674972 11:31 PM 70 F W 3/30/2022 3 Partly cloudyHome ( Mail -Dal 5-2 H . 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