a) Calculate the present value (issue price) of the bonds on May 1 using (1) factor Tables A.2 and A.4, (2) a financial calculator, or (3) Excel function PV. (Hint: Refer to Chapter 3 for tips on calculating.)

b) Prepare the journal entry to record the issue of the bonds on May 1

c) Prepare the journal entry to record the first and second interest payments on November 1, 2020, and May 1, 2021.

On May 1, 2020, Sarasota Corporation, a publicly listed corporation, issued $ 181.800 of five-year, 8% bonds, with interest payable semi-annually on November 1 and May 1. The bonds were issued to yield a market interest rate of 6%. Sarasota uses the effective interest method. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Calculate the present value (issue price) of the bonds on May 1 using (1) factor Tables A.2 and A.4, (2) a financial calculator, or (3) Excel function PV. (Hint: Refer to Chapter 3 for tips on calculating.) (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to O decimal places, e.g. 1,251,24.) Present value of the bonds $ e Textbook and Media List of Accounts Prepare the journal entry to record the issue of the bonds on May 1. (Round answer to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit May 1 Prepare the journal entry to record the first and second interest payments on November 1, 2020, and May 1, 2021. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Nov. 1, 2020 May 1, 2021