Bringham Company issues bonds with a par value of $590,000. The bonds mature in 5 years and pay 9% annual interest in semiannual payments. The annual market rate for the bonds is 12%. (Table B.1. Table B.2, Table B.3, and Table B.4) (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 bónds' issuance.
Bringham Company issues bonds with a par value of $590,000. The bonds mature in 5 years and pay 9% annual interest in semiannual payments. The annual market rate for the bonds is 12%. (Table B.1. Table B.2, Table B.3, and Table B.4) (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 bónds' issuance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bringham Company issues bonds with a par value of $590,000. The bonds mature in 5 years and pay 9% annual interest in
semiannual payments. The annual market rate for the bonds is 12%. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate
factor(s) from the tables provided.)
1. Compute the price of the bonds as of their issue date.
2. Prepare the journal entry to record the bónds' issuance.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Compute the price of the bonds as of their issue date. (Round all table values to 4 decimal places, and use the rounded table
values in calculations. Round intermediate calculations to the nearest dollar amount.)
Table Values are Based on:
n =
Cash Flow
Table Value
Amount
Present Value
ces
Par (maturity) value
Interest (annuity)
Price of bonds
2$
< Required 1
Required 2 >
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