Citywide Company issues bonds with a par value of $85,000. The bonds mature in seven years and pay 10% annual interest insemiannual payments. The annual market rate for the bonds is 8%. (Table B.1, Table B.2, Table B.3, and Table B.4)Note: Use appropriate factor(s) from the tables provided.1. Compute the price of the bonds as of their issue date.2. Prepare the journal entry to record the bonds' issuance.Complete this question by entering your answers in the tabs below.Required 1 Required 2Compute the price of the bonds as of their issue date.Note: Round Intermediate calculations to the nearest dollar amount.Table Values are Based on:Cash FlowPar (maturity) valueInterest (annuity)Price of bondsn =:Table ValueAmount< Required 1Present Value$Required 2 >0

Bonds are debt securities that offer investors fixed interest payments and principal repayment at…

Citywide Company issues bonds with a par value of $85,000. The bonds mature in seven years and pay 10% annual interest in semiannual payments. The annual market rate for the bonds is 8%. (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.

Citywide Company issues bonds with a par value of $85,000. The bonds mature in seven years and pay 10% annual interest in semiannual payments. The annual market rate for the bonds is 8%. (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.

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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