6.

7.

Tables needed.

Bringham Company issues bonds with a par value of $800,000. The bonds mature in 10 years and pay 6% 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) (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. (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= is Cash Flow Table Value Par (maturity) value Interest (annuity) Price of bonds Amount Present Value Required 2 > Citywide Company issues bonds with a par value of $150,000. The bonds mature in five years and pay 10% annual interest in semiannual payments. The annual market rate for the bonds is 8%. (Table B1. 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 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. (Round intermediate calculations to the nearest dollar amount.) Table Values are Based on: n = Table Value Amount Present Value Cash Flow Par (maturity) value Interest (annuity) Price of bonds Required 2 > TABLE B.1" Present Value of 1 p=1/(1 + i) Rate Periods 1% 2% 3% 5% 6% 7% 8% 9% 10% 12% 15% 0.9434 0.8900 0.8396 0.7921 0.7473 0.7050 0.6651 0.6274 0.5919 0.5584 0.5268 0.4970 0.9901 0.9804 0.9803 0.9612 0.9706 0.9423 0.9610 0.9238 0.9515 0.9057 0.94200.8880 0.9327 0.8706 0.9235 0.8535 0.91430.8368 0.9053 0.8203 0.8963 0.8043 0.8874 0.7885 0.8787 0.7730 0.8700 0.7579 0.8613 0.7430 0.8528 0.7284 0.8444 0.7142 0.8360 0.7002 0.8277 0.6864 0.8195 0.6730 0.7798 0.6095 0.7419 0.5521 0.7059 0.5000 0.6717 0.4529 0.9709 0.9426 0.9151 0.8885 0.8626 0.8375 0.8131 0.7894 0.7664 0.7441 0.7224 0.7014 0.6810 0.6611 0.6419 0.6232 0.6050 0.5874 0.5703 0.5537 0.4776 0.4120 0.3554 .3066 0.9615 0.9246 0.8890 0.8548 0.8219 0.7903 0.7599 0.7307 0.7026 0.6756 0.6496 0.6246 0.6006 0.5775 0.5553 0.5339 0.5134 0.4936 0.4746 0.4564 0.3751 .3083 0.2534 0.2083 0.9524 0.9070 0.8638 0.8227 0.7835 0.7462 0.7107 0.6768 0.6446 0.6139 0.5847 0.5568 0.5303 0.5051 0.4810 0.4581 0.4363 0.4155 0.3957 0.3769 0.2953 0.2314 0.1813 0.1420 0.9346 0.8734 0.8163 0.7629 0.7130 0.6663 0.6227 0.5820 0.5439 0.5083 0.4751 0.4440 0.4150 0.3878 0.3624 0.3387 0.3166 0.2959 0.2765 0.2584 0.1842 0.1314 0.0937 0.0668 0.4688 0.9259 0.8573 0.7938 0.7350 0.6806 0.6302 0.5835 0.5403 0.5002 0.4632 0.4289 0.3971 0.3677 0.3405 0.3152 0.2919 0.2703 0.2502 0.2317 0.2145 0.1460 0.0994 0.0676 0.0460 0.9174 0.8417 0.7722 0.7084 0.6499 0.5963 0.5470 0.5019 0.4604 0.4224 0.3875 0.3555 0.3262 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 0.4665 0.4241 0.3855 0.3505 0.3186 0.2897 0.2633 0.2394 0.2176 0.1978 0.1799 0.1635 0.1486 0.0923 0.0573 0.0356 0.0221 0.8929 0.8696 0.7972 0.7561 0.7118 0.6575 0.6355 0.5718 0.5674 0.4972 0.5066 0.4323 0.4523 0.3759 0.4039 0.3269 0.3606 0.2843 0.3220 0.2472 0.2875 0.2149 0.2567 0.1869 0.2292 0.1625 0.2046 0.1413 0.1827 0.1229 0.1631 0.1069 0.1456 0.0929 0.1300 0.0808 0.1161 0.0703 0.1037 0.0611 0.0588 0.0304 0.0334 0.0151 0.01890.0075 0.0107 0.0037 0.2992 0.4423 0.4173 0.3936 0.3714 0.3503 0.3305 0.3118 0.2330 0.1741 0.1301 0.0972 0.2745 0.2519 0.2311 0.2120 0.1945 0.1784 0.1160 0.0754 0.0490 0.0318 25 0 40 0 * Used to compute the present value of a known future amount. For example: How much would you need to invest al compounded semiannually to accumulate $5.000 in 6 years from today? Using the factors of = 12 and i = 5 (12 semiannual periods and a manual of the factor is 0.5568. You would need to invest $2.784 today ($5.000 X 0 5568). -|- a to? TABLE B.31 Present Value of an Annuity of 1 Periods 127 2% 3% 5% 6% 7% 10% 12% 15% 0.9901 1.9704 2.9410 3.9020 4.8534 5.7955 6.7282 7.6517 8.5660 9.4713 10.3676 11.2551 12.1337 13.0037 13.8651 14.7179 15.5623 16.3983 17.2260 18.0456 22.0232 25 8077 29.40B6 32.8347 0.9804 0.9709 0.9615 0.9524 1.9416 1.9135 1.8861 1.8594 2.8839 2.8286 2.7751 2.7232 3.8077 3.7171 3.6299 3.5460 4.7135 4.5797 4.4518 4.3295 5.6014 5.4172 5.2421 5.0757 6.4720 6.2303 6.0021 5.7864 7.3255 7.0197 6.7327 6.4632 8.1622 7.7861 7.4353 7.1078 8.9826 8.5302 8.11097.7217 9.7868 9.2526 8.7605 8.3064 10.5753 9.9540 9.3851 8.8633 11.3484 10.6350 9.9856 9.3936 12.1062 11.2961 10.5631 9.8986 12.8493 11.9379 11.1184 10.3797 13.5777 12.5611 11.6523 10.8378 14.291913.1661 12.1657 11 2741 14.9920 13.7535126593 11.6896 15.6785 14.3238 13.1339 12.0853 16.3514 14.8775 13.5903 12.4622 19.5235 17.4131 15.6221 14.0939 22.3965 19.6004 17.2920 15.3725 24.9986 21.4872 18.664616.3742 27.3555 23.1148 19.7928 17.1591 0.9434 1.8334 2.6730 3.4651 4.2124 4.9173 5.5824 6.2098 6.8017 7.3601 7.8869 8.3838 8.8527 9.2950 9.7122 10.1059 10.4773 10.8276 11.1581 11 4699 12.7834 13.7648 14.4982 15.0463 0.9346 1.8080 26243 3.3872 4.1002 4.7665 5.3893 5.9713 6.5152 7.0236 7.4987 7.9427 8.3577 8.7455 9.1079 9.4466 9.7632 10.0591 10.3356 10.5940 11.6536 12.4090 12.9477 13.3317 0.9259 1.7833 2.5771 3.3121 3.9927 4.6229 5.2064 5.7466 6.2469 6.7101 7.1390 7.5361 7.9038 8.2442 8.5595 8.8514 9.1216 9.3719 9.6036 9.8181 10.6748 11.2578 11.6546 11.9246 0.91740.9091 0.8929 0.8696 1.7591 1.7355 1.6901 1.6257 2.53132.4869 2.4018 2.2832 3.2397 3.1699 3.0373 2.8550 3.8897 3.7908 3.6048 3.3522 4.4859 4.3553 4.1114 3.7845 5.03304.8684 4.5638 4.1604 5.5348 5.3349 4.9676 4.4873 5.9952 5.7590 5.3282 4.7716 6.4177 6.1446 5.6502 5.0188 6.80526.4951 5.9377 5.2337 7.1607 6.8137 6.1944 5.4206 7.4869 7.1034 6.4235 5.5831 7.786273667 6.6282 5.7245 8.06077.6061 6.81095.8474 8.3126 7.8237 6.9740 5.9542 8.5436 8.0216 7.1196 6.0472 8.75568.2014 7.2497 6.1280 8.9501 8.36497.3658 6.1982 9.1285 8.5136 7.4694 6.2593 9.8226 9.0770 7.8431 6.4641 10.2737 9.4269 8.0552 6.5660 10.5668 9.6442 8.1755 6.6166 10.7574 9.7791 8.2438 6.6418 16 17 35 Used to calculate the present value of a series of equal payments made at the end of each period. For example: What is the present value of $2.000 per year for 10 years assuming an annual interest rate of 9%. For i = 10.1 = 9).tho PV factor is 64177.52X year for 10 years in the equivalent of S12.835 Today ($2.000 x 64177