Bringham Company issues bonds with a par value of $670,000 on their stated issue date. The bonds mature in 9 years and pay 10% annual interest in semiannual payments. On the issue date, the annual market rate for the bonds is 12%. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) (Round all table values to 4 decimal places, and use the rounded table values in calculations. Round intermediate calculations to the nearest dollar amount.) 1. What is the amount of each semiannual interest payment for these bonds? 2. How many semiannual interest payments will be made on these bonds over their life? 3. Use the interest rates given to select whether the bonds are issued at par, at a discount, or at a premium. 4. Compute the price of the bonds as of their issue date. 5. Prepare the journal entry to record the bonds issuance.

Table Values are Based on: 18 n = 6.0% Cash Flow Table Value Present Value Amount Par (maturity) value 108,276 33500.0000 3,627,246,000 X 670000.0000 Interest (annuity) X $ 3,627,246,000 Price of bonds Prepare the journal entry to record the bonds' issuance. (Round intermediate calculations to the nearest dollar amount. View transaction list View journal entry worksheet Credit Transaction General Journal Debit No Cash 1 Discount on bonds payable Bonds payable 670,000