Exercise 10-18A (Algo) Computing bond interest and price; recording bond issuance LO C2Citywide Company issues bonds with a par value of $77,000. The bonds mature in nine years and pay 8% annual interest insemiannual payments. The annual market rate for the bonds is 6%. (Table B.1, Table B.2, Table B.3, and Table B.4)Note: Use appropriate factor(s) from the tables provided.1. Compute the price of the bonds as of their issue date.2. Prepare the journal entry to record the bonds' issuance.Complete this question by entering your answers in the tabs below.Required 1 Required 2Compute the price of the bonds as of their issue date.Note: Round intermediate calculations to the nearest dollar amount.Table Values are Based on:Cash FlowPar (maturity) valueInterest (annuity)Price of bondsn =i =14 x4.0% XX Answer is not complete.TableValue0.5775 x10.5631 XAmount$ 85,000 X =$ 4,250 X =Present Value49,08844,89393,981$ Exercise 10-18A (Algo) Computing bond interest and price; recording bond issuance LO C2Citywide Company issues bonds with a par value of $77,000. The bonds mature in nine years and pay 8% annual interest insemiannual 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 2Prepare the journal entry to record the bonds' issuance.Note: Round intermediate calculations to the nearest dollar amount.No1Transaction1Answer is not complete.CashGeneral JournalBonds payablePremium on bonds payable< Required 1Required 2Debit1,160,789Credit77,0001,083,789 x

Issue price of bonds is the present value of the interest annuity & maturity amount at market…

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 $ $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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