Banjo Education Corp. issued a 4%, $140,000 bond that pays interest semiannually each June 30 and December 31. The date of issuance was January 1, 2020. The bonds mature after four years. The market interest rate was 6%. Banjo Education Corp.'s year-end is December 31. Use TABLE 14A.1 and TABLE 14A.2 (For all the requirements, Use appropriate factor(s) from the tables provided.) Required: Preparation Component: 1. Calculate the issue price of the bond. (Round the final answer to the nearest whole dollar.) Issue price of the bond TABLE 14A.1 Present Value of 1 Due in n Periods Rate Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% 1 0.9524 2 3 4 5 6 7 0.9901 0.9803 0.9706 0.9610 0.9515 0.9420 0.9327 0.9235 0.9143 0.9053 0.8963 0.8874 0.8787 8 9 10 11 12 13 14 15 16 17 18 19 0.9804 0.9709 0.9612 0.9426 0.9423 0.9151 0.9238 0.8885 0.9057 0.8626 0.8880 0.8375 0.8706 0.8131 0.8535 0.7894 0.8368 0.7664 0.8203 0.7441 0.8043 0.7224 0.7885 0.7014 0.7730 0.6810 0.7579 0.6611 0.7430 0.6419 0.7284 0.6232 0.7142 0.6050 0.7002 0.5874 0.6864 0.5703 0.6730 0.5537 0.6095 0.4776 0.5521 0.4120 0.5000 0.3554 0.4529 0.3066 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 0.3083 0.2534 0.2083 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 0.9434 0.8900 0.8396 0.7921 0.7473 0.7050 0.6651 0.6274 0.5919 0.5584 0.5268 0.4970 0.4688 0.4423 0.4173 0.3936 0.3714 0.3503 0.3305 0.3118 0.2330 0.1741 0.1301 0.0972 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 0.9259 0.9174 0.9091 0.8929 0.8696 0.8573 0.8417 0.8264 0.7972 0.7561 0.7938 0.7722 0.7513 0.7118 0.6575 0.7350 0.7084 0.6830 0.6355 0.5718 0.6806 0.6499 0.6209 0.5674 0.4972 0.6302 0.5963 0.5645 0.5066 0.4323 0.5835 0.5470 0.5132 0.4523 0.3759 0.5403 0.5019 0.4665 0.4039 0.3269 0.5002 0.4604 0.4241 0.3606 0.2843 0.4632 0.4224 0.3855 0.3220 0.2472 0.4289 0.3875 0.3505 0.2875 0.2149 0.3971 0.3555 0.3186 0.2567 0.1869 0.3677 0.3262 0.2897 0.2292 0.1625 0.3405 0.2992 0.2633 0.2046 0.1413 0.3152 0.2745 0.2394 0.1827 0.1229 0.2919 0.2519 0.2176 0.1631 0.1069 0.2703 0.2311 0.1978 0.1456 0.0929 0.2502 0.2120 0.1799 0.1300 0.0808 0.2317 0.1945 0.1635 0.1161 0.0703 0.2145 0.1784 0.1486 0.1037 0.0611 0.1460 0.1160 0.0923 0.0588 0.0304 0.0994 0.0754 0.0573 0.0334 0.0151 0.0676 0.0490 0.0356 0.0189 0.0075 0.0460 0.0318 0.0221 0.0107 0.0037 0.8700 0.8613 0.8528 0.8444 0.8360 0.8277 0.8195 0.7798 0.7419 0.7059 0.6717 20 25 30 35 40 0.1813 0.1420 TABLE 14A.2 Present Value of an Annuity of 1 Period Rate Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% 1 2 0.9901 1.9704 2.9410 4 5 6 3.9020 4.8534 5.7955 6.7282 7.6517 8.5660 0.9804 1.9416 2.8839 3.8077 4.7135 5.6014 6.4720 7.3255 8.1622 0.9709 0.9615 1.9135 1.8861 2.8286 2.7751 3.7171 3.6299 4.5797 4.4518 5.4172 5.2421 6.2303 6.0021 7.0197 6.7327 7.7861 7.4353 0.9524 1.8594 2.7232 3.5460 4.3295 5.0757 5.7864 6.4632 7.1078 0.9434 1.8334 2.6730 3.4651 4.2124 4.9173 5.5824 6.2098 6.8017 0.9346 1.8080 2.6243 3.3872 4.1002 4.7665 5.3893 5.9713 6.5152 0.9259 0.9174 1.7833 1.7591 2.5771 2.5313 3.3121 3.2397 3.9927 3.8897 4.6229 4.4859 5.2064 5.0330 5.7466 5.5348 6.2469 5.9952 0.9091 0.8929 0.8696 1.7355 1.6901 1.6257 2.4869 2.4018 2.2832 3.1699 3.0373 2.8550 3.7908 3.6048 3.3522 4.3553 4.1114 3.7845 4.8684 4.5638 4.1604 5.3349 4.9676 4.4873 5.7590 5.3282 4.7716 7 8 10 11 12 13 14 15 16 17 9.4713 8.9826 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502 5.0188 10.3676 9.7868 9.2526 8.7605 8.3064 7.8869 7.4987 7.1390 6.8052 6.4951 5.9377 5.2337 11.2551 10.5753 9.9540 9.3851 8.8633 8.3838 7.9427 7.5361 7.1607 6.8137 6.1944 5.4206 12.1337 11.3484 10.6350 9.9856 9.3936 8.8527 8.3577 7.9038 7.4869 7.1034 6.4235 5.5831 13.0037 12.1062 11.2961 10.5631 9.8986 9.2950 8.7455 8.2442 7.7862 7.3667 6.6282 5.7245 13.8651 12.8493 11.9379 11.1184 10.3797 9.7122 9.1079 8.5595 8.0607 7.6061 6.8109 5.8474 14.7179 13.5777 12.5611 11.6523 10.8378 10.1059 9.4466 8.8514 8.3126 7.8237 6.9740 5.9542 15.5623 14.2919 13.1661 12.1657 11.2741 10.4773 9.7632 9.1216 8.5436 8.0216 7.1196 6.0472 16.3983 14.9920 13.7535 12.6593 11.6896 10.8276 10.0591 9.3719 8.7556 8.2014 7.2497 6.1280 17.2260 15.6785 14.3238 13.1339 12.0853 11.1581 10.3356 9.6036 8.9501 8.3649 7.3658 6.1982 18.0456 16.3514 14.8775 13.5903 12.4622 11.4699 10.5940 9.8181 9.1285 8.5136 7.4694 6.2593 22.0232 19.5235 17.4131 15.6221 14.0939 12.7834 11.6536 10.6748 9.8226 9.0770 7.8431 6.4641 25.8077 22.3965 19.6004 17.2920 15.3725 13.7648 12.4090 11.2578 10.2737 9.4269 8.0552 6.5660 29.4086 24.9986 21.4872 18.6646 16.3742 14.4982 12.9477 11.6546 10.5668 9.6442 8.1755 6.6166 32.8347 27.3555 23.1148 19.7928 17.1591 15.0463 13.3317 11.9246 10.7574 9.7791 8.2438 6.6418 18 19 20 25 30 35 40 Banjo Education Corp. issued a 4%, $140,000 bond that pays interest semiannually each June 30 and December 31. The date of issuance was January 1, 2020. The bonds mature after four years. The market interest rate was 6%. Banjo Education Corp.'s year-end is December 31. Use TABLE 14A.1 and TABLE 14A.2 (For all the requirements, Use appropriate factor(s) from the tables provided.) Required: Preparation Component: 1. Calculate the issue price of the bond. (Round the final answer to the nearest whole dollar.) Issue price of the bond 2. Prepare a general journal entry to record the issuance of the bonds. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) View transaction list Journal entry worksheet Record the sale of bonds on original issue date. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2020 Record entry Clear entry View general Journal 3. Determine the total bond interest expense that will be recognized over the life of these bonds. (Do not round intermediate calculations. Round your answer to the nearest whole dollar.) Total bond interest expense 4. Prepare the first two years of an amortization table based on the effective interest method. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) Cash Interest Period Ending Paid Period Interest Expense Discount Amort. Unamortized Discount Carrying Value Jan. 1/20 June 30/20 Dec. 31/20 June 30/21 Dec. 31/21 5. Present the journal entries Banjo would make to record the first two interest payments. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 1 2 > Record the six months' interest and discount amortization. Note: Enter debits before credits. General Journal Debit Credit Date June 30, 2020 Journal entry worksheet