prob 2

Check Problem 10-7AA (Algo) Computing bond price and recording issuance LO C2 Hartford Research issues bonds dated January 1 that pay interest semiannually on June 30 and December 31. The bonds have a $28,000 par value and an annual contract rate of 10%, and they mature in 10 years (Table 3.1 Table 8.2. Table 8.3. and Table 8.4) (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations.) Required: Consider each separate situation 1. The market rate at the date of issuance is 8% (a) Complete the below table to determine the bonds'issue price on January 1 (b) Prepare the journal entry to record their issuance, 2. The market rate at the date of issuance is 10% (a) Complete the below table to determine the bonds'issue price on January 1 (b) Prepare the journal entry to record their issuance. 3. The market rate at the date of issuance is 126 (a) Complete the below table to determine the bonds issue price on January 1 (b) Prepare the journal entry to record their issuance. Required 1A Required 1B Required 2A Required 28 Required 3A Required 38 nts Complete the below table to determine the bonds issue price on January 1 If the market rate at the date of issuance is 8% (Round all table values to 4 decimal places.) eBook Table values are based on: Print eferences Cash Flow Table Value Amount Present Value Par (maturity) value Interest (annuity) Price of bonds Required 18 ) DIA 2. Nex Journal entry worksheet Record the issue of bonds with a par value of $28,000 on January 1. Assume that the market rate of interest at the date of issue is 10%. Note: Enter debits before credits. Date General Journal Debit Credit January 01 View general Journal Clear entry Record entry 2 of 2 Next View transaction list Journal entry worksheet