ch14 Q.15

The issue price of the bonds?

cash?

discound on bonds payable?

bonds payable?

On January 1, Aiken Company issued $700,000 par value, 10%,5-year bonds (1.e., there were 700 of $1,000 par value bonds in the issue). Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1 . Aiken paid $10,000 in underwriting fees. Determine the issue price of the bonds with a 12% market rate of interest and prepare the journal entry to record the bond issue. Euture Value of $1 table Euture Value of an Ordinary Annuity table Future Value of an Annuity Due table Present Value of $1 table Present Value of an Ordinary Annuity table Present Value of an Annuity Due table Determine the issue price of the bonds. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, XXXXXX. Round your final answers to the nearest whole dollar) The issue price of the bonds =