Citywide Company issues bonds with a par value of $66,000 on their stated issue date. The bonds mature in ten years and pay 12% annual interest in semiannual payments. On the issue date, the annual market rate for the bonds is 10%. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) 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.

Req 4 Req 5 Req 1 to 3 Compute the price of the bonds as of their issue date. (Round intermediate calculations to the nearest dollar amount.) Table Values are Based on: Cash Flow Par (maturity) value Interest (annuity) Price of bonds Table Value Amount Present Value Req 1 to 3 Req 5 Req 1 to 3 Req 4 Req 5 Prepare the journal entry to record the bonds' issuance. (Round intermediate calculations to the nearest dollar amount.) View transaction list Journal entry worksheet Record the issue of bonds with a par value of $66,000. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal