Page 5 Prob. 1 Set up the problem as shown above to figure out how much the bonds will sell for and prepare the journal entries Effective Rate/Market Rate 10% Contract Rate is 9% Crerny Co. produces and sell bottle capping equipment for soft drinks and spring water bottlers. To finance its operations, Crerny Co. issued $8,000,000 of five years, 9% bonds with interest payable semiannually at an effective interest rate of 10%. Determine the present value of the bonds payable, using the present value tables in Exhibit 8 and 10. (Round to the nearest dollar) Present value of face of bond Present value of the annuity Journalize the following entries: 2019 Jan. 5 Sale of the bonds (discount or premium) June 30 Paid the semiannually interest and the amortization on the bonds 2023 Dec 31 Paid the bonds payable at maturity

Pages Prob, 1 Set up the problem as shown above to figure out how much the bonds will sell for and prepare the journal entries Effective Rate/Market Rate 10% Contract Rate is 9% Crerny Co. produces and sell bottle capping equipment for soft drinks and spring water bottlers. To finance its operations, Crerny Co. Issued $8,000,000 of five years, 9% bonds with interest payable semiannually at an effective interest rate of 10%. Determine the present value of the bonds payable, using the present value tables in Exhibit 8 and 10. (Round to the nearest dollar) Present value of face of bond Present value of the annuity Journalize the following entries: 2019 Jan. 5 Sale of the bonds (discount or premium) June 30 Paid the semiannually interest and the amortization on the bonds 2023 Dec 31 Paid the bonds payable at maturity