Determine the bond issue proceeds for each of the following bonds payable. All bonds are issued on January​ 1, 2023.  a. Brandy Corporation issued bonds in the amount of $1,290,000 that will be paid in 3 years. Interest of $38,700 is payable semiannually each June 30 and December 31 with the first interest payment at the end of the first period on June​ 30, 2023. If the market rate of interest is 10​%, what is the amount of the bond issue​ proceeds? ​(Use the present value and future value​ tables, a financial​ calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula​ method, use factor amounts rounded to five decimal​ places, X.XXXXX. Round your final answer to the nearest​ cent, $X.XX.)   B. Tandy Corporation issued bonds in the amount of $4,400,000 that will be paid in nine years. Interest of $132,000 is payable semiannually each June 30 and December 31 with the first interest payment at the end of the first period on June​ 30, 2023. If the market rate of interest is 8​%, what is the amount of the bond issue​ proceeds?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Determine the bond issue proceeds for each of the following bonds payable. All bonds are issued on January​ 1, 2023. 

a. Brandy Corporation issued bonds in the amount of $1,290,000 that will be paid in 3 years. Interest of $38,700 is payable semiannually each June 30 and December 31 with the first interest payment at the end of the first period on June​ 30, 2023. If the market rate of interest is 10​%, what is the amount of the bond issue​ proceeds? ​(Use the present value and future value​ tables, a financial​ calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula​ method, use factor amounts rounded to five decimal​ places, X.XXXXX. Round your final answer to the nearest​ cent, $X.XX.)

 

B. Tandy Corporation issued bonds in the amount of $4,400,000 that will be paid in nine years. Interest of $132,000 is payable semiannually each June 30 and December 31 with the first interest payment at the end of the first period on June​ 30, 2023. If the market rate of interest is 8​%, what is the amount of the bond issue​ proceeds?
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