Bringham Company issues bonds with a par value of $520,000. The bonds mature in 10 years and pay 8% annual interest in semiannual payments. The annual market rate for the bonds is 10%. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appr 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 vour answ
Bringham Company issues bonds with a par value of $520,000. The bonds mature in 10 years and pay 8% annual interest in semiannual payments. The annual market rate for the bonds is 10%. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appr 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 vour answ
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![**Bingham Company Bond Issuance**
Bingham Company issues bonds with a par value of $520,000. The bonds mature in 10 years and pay 8% annual interest in semiannual payments. The annual market rate for the bonds is 10%. (Refer to the appropriate factors from the tables provided: Table B1, Table B2, Table B3, and Table B4.)
**Tasks:**
1. Compute the price of the bonds as of their issue date.
2. Prepare the journal entry to record the bonds' issuance.
**Instructions:**
Complete this question by entering your answers in the tabs below.
- Required 1
- Required 2
**Instructions for Required 1:**
Compute the price of the bonds as of their issue date. Round all table values to 4 decimal places and use the rounded table values in calculations. Round intermediate calculations to the nearest dollar amount.
**Table Values are Based on:**
- n = [blank space]
- i = [blank space]
**Cash Flow Table:**
- **Par (maturity) value:** Consists of columns for Table Value, Amount, and Present Value.
- **Interest (annuity):** Consists of columns for Table Value, Amount, and Present Value.
- **Price of bonds:** Calculated based on above values.
The image shows a structured table format where users need to fill in based on calculations using the provided data and the relevant factors from the mentioned tables.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F97b5df25-1667-438a-b46e-c2a0d1ae7c86%2F89492ff8-10a0-481d-aa91-7e7aae89d56c%2F12sw8n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Bingham Company Bond Issuance**
Bingham Company issues bonds with a par value of $520,000. The bonds mature in 10 years and pay 8% annual interest in semiannual payments. The annual market rate for the bonds is 10%. (Refer to the appropriate factors from the tables provided: Table B1, Table B2, Table B3, and Table B4.)
**Tasks:**
1. Compute the price of the bonds as of their issue date.
2. Prepare the journal entry to record the bonds' issuance.
**Instructions:**
Complete this question by entering your answers in the tabs below.
- Required 1
- Required 2
**Instructions for Required 1:**
Compute the price of the bonds as of their issue date. Round all table values to 4 decimal places and use the rounded table values in calculations. Round intermediate calculations to the nearest dollar amount.
**Table Values are Based on:**
- n = [blank space]
- i = [blank space]
**Cash Flow Table:**
- **Par (maturity) value:** Consists of columns for Table Value, Amount, and Present Value.
- **Interest (annuity):** Consists of columns for Table Value, Amount, and Present Value.
- **Price of bonds:** Calculated based on above values.
The image shows a structured table format where users need to fill in based on calculations using the provided data and the relevant factors from the mentioned tables.
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