ACCT 3002- E3A Final -Fall 2017 Question (2): Bonds-Pricing 15 points On January 1, 2017 XYZ Co. issued 4-year bonds with a face value of $1,000,000 and a stated (coupon) interest rate of 6%, payable annually on December 31. The bonds were sold at a discount, The following are selected segments of present value tables. Present value of an ordinarv annuity of $1 Periods 5% 6% 7% 0.952 0.943 0.935 2 1.859 1.833 1808 Periods 5%6%7% 0.952 0.943 0.935 20.907 0.890 0.873 3 0.864 0.840 0.816 4 0.823 0.792 0.763 2.723 2.673 2.624 3.546 3.465 3.387 Required: (A) Calculate the issue price of the bonds (B) Record the entry for issuance of bonds (C) Record the entry for the first interest payment on Dec. 31 2017