On May $1,2023,$ Blossom Corporation, a publicly listed corporation, issued $$150,000$ of five$-$year, $8\%$ bonds, with interest payable

semi$-$annually on November $1$ and May $1.$ The bonds were issued to yield a market interest rate of $6\%.$ Blossom uses the effective

interest method.

Click here to view the factor table PRESENT VALUE OF $1.$

Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF $1.$

$($a$)$

Your answer is correct.

Calculate the present value $($issue price$)$ of the bonds on May $1(1)$ using the factor tables provided $(2)$ a financial calculator, or $(3)$

Excel function PV$.($Hint: Refer to Chapter $3$ for tips on calculating.$)($Round present value factor calculations to $5$ decimal places, eg$.$

$1\mathrm{.}25124$ and final answer to $O$ decimal places e$.$g$.58,971.)$

Present value of the bonds

$

$($b$)$

Prepare the journal entry to record the issue of the bonds on May $1.($Credit account titles are automatically indented when the

amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter Ofor the amounts. Lists

debit entry before credit entry. Round answer to $0$ decimal places, es$.5\mathrm{.}275.)$

Account Titles and Explanation

Debit

Credit

Cash

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List of Accounts

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Attempts: $0$ of $3$ used

Prepare the journal entries to record the first and second interest payments on November $1,2023,$ and May $1,2024.($Credit

account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for

the account titles and enter $0$ for the amounts. List all debit entries before credit entries. Round answers to $0$ decimal places, e$.$g$.5,275.)$