Citywide Company issues bonds with a par value of $77,000. The bonds mature in nine years and pay 8% annual interest in semiannual payments. The annual market rate for the bonds is 6%. (Table B.1, Table B.2, Table B.3, and Table B.4) Note: Use appropriate factor(s) from the tables provided. 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the bonds' issuance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the price of the bonds as of their issue date. Note: Round intermediate calculations to the nearest dollar amount. Table Values are Based on: Cash Flow Par (maturity) value Interest (annuity) Price of bonds n= ¡= 14 x 4.0% X Answer is not complete. Table Value 0.5775 X 10.5631 X Amount $ 85,000 X $4,250 X = Present Value 49,088 44,893 93,981 $ $
Citywide Company issues bonds with a par value of $77,000. The bonds mature in nine years and pay 8% annual interest in semiannual payments. The annual market rate for the bonds is 6%. (Table B.1, Table B.2, Table B.3, and Table B.4) Note: Use appropriate factor(s) from the tables provided. 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the bonds' issuance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the price of the bonds as of their issue date. Note: Round intermediate calculations to the nearest dollar amount. Table Values are Based on: Cash Flow Par (maturity) value Interest (annuity) Price of bonds n= ¡= 14 x 4.0% X Answer is not complete. Table Value 0.5775 X 10.5631 X Amount $ 85,000 X $4,250 X = Present Value 49,088 44,893 93,981 $ $
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 96PSA
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