Determine the bond issue proceeds for each of the following bonds payable. All bonds are issued on January 1, 2019.
a. Solntark Corporation issued bonds in the amount of $150,000 that will b e paid in five years. Interest of $15,000 is payable annually each December 31 with the first interest payment at the end of the year on December 31, 2019. If the market rate of interest is 8%, what is the amount of the bond issue proceeds?
b. Meltech Corporation issued bonds in the amount of $800,000 that will be paid in 10 years. Interest of $ 24,000 is payable semiannually each June 30 and December 31 with the first interest payment at the end of the period on June 30, 2019. If the market rate of interest is 8%, what is the amount of the bond issue proceeds?