On January 1, 2022, Drennen, Incorporated, issued $4.6 million face amount of 11-year, 10% stated rate...

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On January 1, 2022, Drennen, Incorporated, issued $4.6 million face amount of 11-year, 10% stated rate bonds when market interest rates were 8%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2029. Table 6-4, Table 6-5 Note: Use appropriate factor from the table provided. Required: a. Calculate the proceeds (issue price) of Drennen Incorporated's bonds on January 1, 2022, assuming that the bonds were sold to provide a market rate of return to the investor. Note: Enter your answers in whole dollars, not in millions. Proceeds Required Information [The following information applies to the questions displayed below.] On January 1, 2022, Drennen, Incorporated, issued $4.6 million face amount of 11-year, 10% stated rate bonds when market interest rates were 8%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2029. Table 6-4, Table 6-5 Note: Use appropriate factor from the table provided. b-2. Assume instead that the proceeds were $4,564,000. Record the journal entry to show the payment of semiannual interest and the related discount amortization on June 30, 2022, assuming that the discount of $36.000 is amortized on a straight-line basis. Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account field. View transaction list Journal entry worksheet 1 Record the semiannual cash payment and amortization of discount. Note: Enter debits before credits. Event 1 Record entry General Journal Clear entry Debit Credit View general journal Table 6-4: Factors for Calculating the Present Value of $1 Number of Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 35 40 45 50 2% 0.980 0.961 0.942 0.924 0.906 0.888 0.871 0.853 0.837 0.820 0.804 0.788 0.773 0.758 0.743 0.728 0.714 0.700 0.686 0.673 0.660 0.647 0.634 0.622 0.610 0.552 0.500 0.453 0.410 0.372 Discount Rate 8% 10% 12% 0.9259 0.9091 0.8929 0.8573 0.8264 0.7972 0.7938 0.7513 0.7118 0.7350 0.6830 0.6355 0.6806 0.6209 0.5674 0.6302 0.5645 0.5066 0.6651 0.5835 0.5132 0.4523 0.6274 0.5403 0.4665 0.4039 0.5919 0.5002 0.4241 0.3606 0.5584 0.4632 0.3855 0.3220 0.5268 0.4289 0.3505 0.2875 0.4970 0.3971 0.3186 0.2567 0.4688 0.3677 0.2897 0.2292 0.4423 0.3405 0.2633 0.2046 0.4173 0.3152 0.2394 0.1827 0.3936 0.2919 0.2176 0.1631 0.3714 0.2703 0.1978 0.1456 0.3503 0.2502 0.1799 0.1300 0.3305 0.2317 0.1635 0.1161 0.3118 0.2145 0.1486 0.1037 0.1987 0.1351 0.0926 0.1839 0.1228 0.0826 0.1703 0.1117 0.0738 0.1577 0.1015 0.0659 0.1460 0.0994 0.0676 0.1712 0.1407 4% 0.9615 0.9246 0.8890 0.8548 0.8219 0.7903 0.7599 0.7307 0.7026 0.6756 0.6496 0.6246 0.6006 0.5775 0.5553 0.5339 0.5134 0.4936 0.4746 0.4564 0.4388 0.2942 0.4220 0.2775 0.4057 0.2618 0.3901 0.2470 0.3751 0.2330 0.3083 0.2534 0.1741 0.1301 0.0972 0.2083 0.0727 0.0543 6% 0.9434 0.8900 0.8396 0.7921 0.7473 0.7050 ▬▬▬▬ 0.0460 0.0313 0.0213 0.0923 0.0573 0.0356 0.0221 0.0137 0.0085 ololololol 0.0588 0.0334 0.0189 0.0107 0.0061 0.0035 14% 0.8772 0.7695 0.6750 0.5921 0.5194 0.4556 0.3996 0.3506 0.3075 0.2697 0.2366 0.2076 0.1821 0.1597 0.1401 0.1229 0.1078 0.0946 0.0829 0.0728 0.0638 0.0560 0.0491 0.0431 0.0378 0.0196 0.0102 0.0053 0.0027 0.0014 16% 0.8621 0.7432 0.6407 0.5523 0.4761 0.4104 0.3538 0.3050 0.2630 0.2267 0.1954 0.1685 0.1452 0.1252 0.1079 0.0930 0.0802 0.0691 0.0596 0.0514 0.0443 0.0382 0.0329 0.0284 0.0245 0.0116 0.0055 0.0026 0.0013 0.0006 18% 0.8475 0.7182 0.6086 0.5158 0.4371 0.3704 0.3139 0.2660 0.2255 0.1911 0.1619 0.1372 0.1163 0.0985 0.0835 0.0708 0.0600 0.0508 0.0431 0.0365 0.0309 0.0262 0.0222 0.0188 0.0160 0.0070 0.0030 0.0013 0.0006 0.0003 20% 0.8333 0.6944 0.5787 0.4823 0.4019 0.3349 0.2791 0.2326 0.1938 0.1615 0.1346 0.1122 0.0935 0.0779 0.0649 0.0541 0.0451 0.0376 0.0313 0.0261 0.0217 0.0181 0.0151 0.0126 0.0105 0.0042 0.0017 0.0007 0.0003 0.0001 Table 6-5: Factors for Calculating the Present Value of an Annuity of $1 Number of Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 4 1983 84 8 25 30 35 40 45 50 2% 6% 0.980 0.9434 1.942 1.8334 2.884 2.6730 3.808 3.4651 4.713 4.2124 5.601 4.9173 6.472 5.5824 7.325 6.2098 8.162 6.8017 8.983 8.1109 7.3601 9.787 8.7605 7.8869 10.575 9.3851 8.3838 11.348 9.9856 8.8527 12.106 10.5631 9.2950 12.849 11.1184 9.7122 13.578 11.6523 10.1059 14.292 12.1657 10.4773 14.992 12.6593 10.8276 15.678 13.1339 11.1581 16.351 13.5903 11.4699 17.011 14.0292 11.7641 17.658 14.4511 12.0416 18.292 18.914 14.8568 12.3034 10.3711 15.2470 12.5504 10.5288 15.6221 12.7834 10.6748 19.523 22.396 17.2920 13.7648 11.2578 24.999 18.6646 14.4982 11.6546 27.355 19.7928 15.0463 11.9246 29.490 20.7200 15.4558 12.1084 31.424 21.4822 15.7619 12.2335 4% 0.9615 1.8861 2.7751 3.6299 4.4518 5.2421 6.0021 6.7327 7.4353 HANN Discount Rate 10% 0.9091 1.7355 8% 0.9259 1.7833 2.5771 2.4869 3.3121 3.1699 3.9927 3.7908 3.6048 4.6229 4.3553 4.1114 5.2064 4.8684 4.5638 5.7466 5.3349 4.9676 6.2469 5.7590 5.3282 6.7101 6.1446 5.6502 7.1390 6.4951 5.9377 7.5361 6.8137 6.1944 7.9038 7.1034 6.4235 8.2442 7.3667 6.6282 6.0021 5.4675 8.5595 7.6061 6.8109 6.1422 8.8514 7.8237 6.9740 6.2651 9.1216 8.0216 7.1196 6.3729 9.3719 8.2014 7.2497 9.6036 8.3649 7.3658 9.8181 8.5136 7.4694 10.0168 8.6487 7.5620 10.2007 8.7715 7.6446 8.8832 7.7184 8.9847 7.7843 9.0770 9.4269 9.6442 9.7791 9.8628 9.9148 ▬▬▬▬▬▬ 12% 14% 16% 0.8929 0.8772 0.8621 1.6901 1.6467 1.6052 2.4018 2.3216 2.2459 3.0373 2.9137 2.7982 Joha 7.8431 8.0552 8.1755 8.2438 8.2825 8.3045 2.6901 3.1272 3.4331 3.2743 3.8887 3.6847 3.4976 4.2883 4.0386 3.8115 4.6389 4.3436 4.0776 4.9464 4.6065 4.3030 5.2161 4.8332 4.4941 5.4527 5.0286 4.6560 5.6603 5.1971 4.7932 5.8424 5.3423 4.9095 7.1050 7.1232 7.1327 5.0081 5.0916 5.1624 5.7487 5.2223 5.8178 5.2732 5.8775 5.3162 5.9288 5.3527 5.9731 5.3837 6.0113 5.4099 6.0442 5.4321 6.0726 5.4509 5.4669 5.5168 5.5386 5.5482 5.5523 5.5541 5.5755 5.6685 6.4674 6.5504 6.6231 6.6870 6.7429 6.7921 6.8351 6.8729 6.0971 7.0027 6.1772 7.0700 6.2153 6.2335 6.2421 6.2463 18% 0.8475 1.5656 2.1743 Mee 20% 0.8333 1.5278 2.1065 2.5887 2.9906 3.3255 3.6046 3.8372 4.0310 4.1925 4.3271 4.4392 4.5327 4.6106 4.6755 4.7296 4.7746 4.8122 4.8435 4.8696 4.8913 4.9094 4.9245 4.9371 4.9476 4.9789 4.9915 4.9966 4.9986 4.9995 On January 1, 2022, Drennen, Incorporated, issued $4.6 million face amount of 11-year, 10% stated rate bonds when market interest rates were 8%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2029. Table 6-4, Table 6-5 Note: Use appropriate factor from the table provided. Required: a. Calculate the proceeds (issue price) of Drennen Incorporated's bonds on January 1, 2022, assuming that the bonds were sold to provide a market rate of return to the investor. Note: Enter your answers in whole dollars, not in millions. Proceeds Required Information [The following information applies to the questions displayed below.] On January 1, 2022, Drennen, Incorporated, issued $4.6 million face amount of 11-year, 10% stated rate bonds when market interest rates were 8%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2029. Table 6-4, Table 6-5 Note: Use appropriate factor from the table provided. b-2. Assume instead that the proceeds were $4,564,000. Record the journal entry to show the payment of semiannual interest and the related discount amortization on June 30, 2022, assuming that the discount of $36.000 is amortized on a straight-line basis. Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account field. View transaction list Journal entry worksheet 1 Record the semiannual cash payment and amortization of discount. Note: Enter debits before credits. Event 1 Record entry General Journal Clear entry Debit Credit View general journal Table 6-4: Factors for Calculating the Present Value of $1 Number of Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 35 40 45 50 2% 0.980 0.961 0.942 0.924 0.906 0.888 0.871 0.853 0.837 0.820 0.804 0.788 0.773 0.758 0.743 0.728 0.714 0.700 0.686 0.673 0.660 0.647 0.634 0.622 0.610 0.552 0.500 0.453 0.410 0.372 Discount Rate 8% 10% 12% 0.9259 0.9091 0.8929 0.8573 0.8264 0.7972 0.7938 0.7513 0.7118 0.7350 0.6830 0.6355 0.6806 0.6209 0.5674 0.6302 0.5645 0.5066 0.6651 0.5835 0.5132 0.4523 0.6274 0.5403 0.4665 0.4039 0.5919 0.5002 0.4241 0.3606 0.5584 0.4632 0.3855 0.3220 0.5268 0.4289 0.3505 0.2875 0.4970 0.3971 0.3186 0.2567 0.4688 0.3677 0.2897 0.2292 0.4423 0.3405 0.2633 0.2046 0.4173 0.3152 0.2394 0.1827 0.3936 0.2919 0.2176 0.1631 0.3714 0.2703 0.1978 0.1456 0.3503 0.2502 0.1799 0.1300 0.3305 0.2317 0.1635 0.1161 0.3118 0.2145 0.1486 0.1037 0.1987 0.1351 0.0926 0.1839 0.1228 0.0826 0.1703 0.1117 0.0738 0.1577 0.1015 0.0659 0.1460 0.0994 0.0676 0.1712 0.1407 4% 0.9615 0.9246 0.8890 0.8548 0.8219 0.7903 0.7599 0.7307 0.7026 0.6756 0.6496 0.6246 0.6006 0.5775 0.5553 0.5339 0.5134 0.4936 0.4746 0.4564 0.4388 0.2942 0.4220 0.2775 0.4057 0.2618 0.3901 0.2470 0.3751 0.2330 0.3083 0.2534 0.1741 0.1301 0.0972 0.2083 0.0727 0.0543 6% 0.9434 0.8900 0.8396 0.7921 0.7473 0.7050 ▬▬▬▬ 0.0460 0.0313 0.0213 0.0923 0.0573 0.0356 0.0221 0.0137 0.0085 ololololol 0.0588 0.0334 0.0189 0.0107 0.0061 0.0035 14% 0.8772 0.7695 0.6750 0.5921 0.5194 0.4556 0.3996 0.3506 0.3075 0.2697 0.2366 0.2076 0.1821 0.1597 0.1401 0.1229 0.1078 0.0946 0.0829 0.0728 0.0638 0.0560 0.0491 0.0431 0.0378 0.0196 0.0102 0.0053 0.0027 0.0014 16% 0.8621 0.7432 0.6407 0.5523 0.4761 0.4104 0.3538 0.3050 0.2630 0.2267 0.1954 0.1685 0.1452 0.1252 0.1079 0.0930 0.0802 0.0691 0.0596 0.0514 0.0443 0.0382 0.0329 0.0284 0.0245 0.0116 0.0055 0.0026 0.0013 0.0006 18% 0.8475 0.7182 0.6086 0.5158 0.4371 0.3704 0.3139 0.2660 0.2255 0.1911 0.1619 0.1372 0.1163 0.0985 0.0835 0.0708 0.0600 0.0508 0.0431 0.0365 0.0309 0.0262 0.0222 0.0188 0.0160 0.0070 0.0030 0.0013 0.0006 0.0003 20% 0.8333 0.6944 0.5787 0.4823 0.4019 0.3349 0.2791 0.2326 0.1938 0.1615 0.1346 0.1122 0.0935 0.0779 0.0649 0.0541 0.0451 0.0376 0.0313 0.0261 0.0217 0.0181 0.0151 0.0126 0.0105 0.0042 0.0017 0.0007 0.0003 0.0001 Table 6-5: Factors for Calculating the Present Value of an Annuity of $1 Number of Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 4 1983 84 8 25 30 35 40 45 50 2% 6% 0.980 0.9434 1.942 1.8334 2.884 2.6730 3.808 3.4651 4.713 4.2124 5.601 4.9173 6.472 5.5824 7.325 6.2098 8.162 6.8017 8.983 8.1109 7.3601 9.787 8.7605 7.8869 10.575 9.3851 8.3838 11.348 9.9856 8.8527 12.106 10.5631 9.2950 12.849 11.1184 9.7122 13.578 11.6523 10.1059 14.292 12.1657 10.4773 14.992 12.6593 10.8276 15.678 13.1339 11.1581 16.351 13.5903 11.4699 17.011 14.0292 11.7641 17.658 14.4511 12.0416 18.292 18.914 14.8568 12.3034 10.3711 15.2470 12.5504 10.5288 15.6221 12.7834 10.6748 19.523 22.396 17.2920 13.7648 11.2578 24.999 18.6646 14.4982 11.6546 27.355 19.7928 15.0463 11.9246 29.490 20.7200 15.4558 12.1084 31.424 21.4822 15.7619 12.2335 4% 0.9615 1.8861 2.7751 3.6299 4.4518 5.2421 6.0021 6.7327 7.4353 HANN Discount Rate 10% 0.9091 1.7355 8% 0.9259 1.7833 2.5771 2.4869 3.3121 3.1699 3.9927 3.7908 3.6048 4.6229 4.3553 4.1114 5.2064 4.8684 4.5638 5.7466 5.3349 4.9676 6.2469 5.7590 5.3282 6.7101 6.1446 5.6502 7.1390 6.4951 5.9377 7.5361 6.8137 6.1944 7.9038 7.1034 6.4235 8.2442 7.3667 6.6282 6.0021 5.4675 8.5595 7.6061 6.8109 6.1422 8.8514 7.8237 6.9740 6.2651 9.1216 8.0216 7.1196 6.3729 9.3719 8.2014 7.2497 9.6036 8.3649 7.3658 9.8181 8.5136 7.4694 10.0168 8.6487 7.5620 10.2007 8.7715 7.6446 8.8832 7.7184 8.9847 7.7843 9.0770 9.4269 9.6442 9.7791 9.8628 9.9148 ▬▬▬▬▬▬ 12% 14% 16% 0.8929 0.8772 0.8621 1.6901 1.6467 1.6052 2.4018 2.3216 2.2459 3.0373 2.9137 2.7982 Joha 7.8431 8.0552 8.1755 8.2438 8.2825 8.3045 2.6901 3.1272 3.4331 3.2743 3.8887 3.6847 3.4976 4.2883 4.0386 3.8115 4.6389 4.3436 4.0776 4.9464 4.6065 4.3030 5.2161 4.8332 4.4941 5.4527 5.0286 4.6560 5.6603 5.1971 4.7932 5.8424 5.3423 4.9095 7.1050 7.1232 7.1327 5.0081 5.0916 5.1624 5.7487 5.2223 5.8178 5.2732 5.8775 5.3162 5.9288 5.3527 5.9731 5.3837 6.0113 5.4099 6.0442 5.4321 6.0726 5.4509 5.4669 5.5168 5.5386 5.5482 5.5523 5.5541 5.5755 5.6685 6.4674 6.5504 6.6231 6.6870 6.7429 6.7921 6.8351 6.8729 6.0971 7.0027 6.1772 7.0700 6.2153 6.2335 6.2421 6.2463 18% 0.8475 1.5656 2.1743 Mee 20% 0.8333 1.5278 2.1065 2.5887 2.9906 3.3255 3.6046 3.8372 4.0310 4.1925 4.3271 4.4392 4.5327 4.6106 4.6755 4.7296 4.7746 4.8122 4.8435 4.8696 4.8913 4.9094 4.9245 4.9371 4.9476 4.9789 4.9915 4.9966 4.9986 4.9995

Answer rating: 100% (QA)

1 Stated Rate of Interest It is the rate of interest that was stated on the face of bond certificate ... View the full answer