eBook Show Me How Print Item Bond discount, entries for bonds payable transactions Instructions Present Value Tables Chart of Accounts Journal Final Questions Instructions On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market (effective interest rate of 8%, receiving cash of S37,282,062 Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1 2. Journalize the entries to record the following * a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method. (Round to the nearest dollar.) b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the straight-line method (Round to the nearest dollar) 3. Determine the total interest expense for Year 1. 4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest? 5. Compute the price of $37,282,062 received for the bonds by using the present value tables. (Round to the nearest dollar) *Refer to the Chart of Accounts for exact wording of account titles. Present Value Tables Two present value tables are provided: Present Value of $1 at Compound Interest Due in n Periods and Present Value of Ordinary Annuity of S1 per Period. Use them as directed in the problem requirements Present Value of $1 at Compound Interest Due in n Periods Periods 4.0% 4.5% 5% 5.5% 6% 6.5% 7% 1 0.96154 0.95694 0.95238 0.94787 0.94340 0.93897 0.93458 2 0.92456 0.91573 0.90703 0.89845 0.89000 0.88166 0.87344 3 0.88900 0.87630 0.86384 0.85161 0.83962 0.82785 0.81630 4 0.85480 0.83856 0.82270 0.80722 0.79209 0.77732 0.76290 5 0.82193 0.80245 0.78353 0.76513 0.74726 0.72988 0.71299 6 0.79031 0.76790 0.74622 0.72525 0.70496 0.68533 0.66634 7 0.75992 0.73483 0.71068 0.68744 0.66506 0.64351 0.62275 8 0.73069 0.70319 0.67684 0.65160 0.62741 0.60423 0.58201 9 0.70259 0.67290 0.64461 0.61763 0.59190 0.56735 0.54393 10 0.67556 0.64393 0.61391 0.58543 0.55839 0.53273 0.50835 11 0.64958 0.61620 0.58468 0.55491 0.52679 0.50021 0.47509 12 0.62460 0.58966 0.55684 0.52598 0.49697 0.46968 0.44401 13 0.60057 0.56427 0.53032 0.49856 0.46884 0.44102 0.41496 14 0.57748 0.53997 0.50507 0.47257 0.44230 0.41410 0.38782 15 0.55526 0.51672 0.48102 0.44793 0.41727 0.38883 0.36245 16 0.53391 0.49447 0.45811 0.42458 0.39365 0.36510 0.33873 17 0.51337 0.47318 0.43630 0.40245 0.37136 0.34281 0.31657 18 0.49363 0.45280 0.41552 0.38147 0.35034 0.32189 0.29586 19 0.47464 0.43330 0.39573 0.36158 0.33051 0.30224 0.27651 20 0.45639 0.41464 0.37689 0.34273 0.31180 0.28380 0.25842 21 0.43883 0.39679 0.35894 0.32486 0.29416 0.26648 0.24151 22 0.42196 0.37970 0.34185 0.30793 0.27751 0.25021 0.22571 Instructions Present Value Tables Chart of Accounts ournal Final Questions Present Value Tables 22 0.42196 0.37970 0.34185 0.30793 0.27751 0.25021 0.22571 23 0.40573 0.36335 0.32557 0.29187 0.26180 0.23494 0.21095 24 0.39012 0.34770 0.31007 0.27666 0.24698 0.22060 0.19715 25 0.37512 0.33273 0.29530 0.26223 0.23300 0.20714 0.18425 26 0.36069 0.31840 0.28124 0.24856 0.21981 0.19450 0.17220 27 0.34682 0.30469 0.26785 0.23560 0.20737 0.18263 0.16093 28 0.33348 0.29157 0.25509 0.22332 0.19563 0.17148 0.15040 29 0.32065 0.27902 0.24295 0.21168 0.18456 0.16101 0.14056 30 0.30832 0.26700 0.23138 0.20064 0.17411 0.15119 0.13137 31 0.29646 0 0.25550 0.22036 0.19018 0.16425 0.14196 0.12277 32 0.28506 0.24450 0.20987 0.18027 0.15496 0.13329 0.11474 33 0.27409 0.23397 0.19987 0.17087 0.14619 0.12516 0.10723 34 0.26355 0.22390 0.19035 0.16196 0.13791 0.11752 0.10022 0.25342 35 0.21425 0.18129 0.15352 0.13011 0.11035 0.09366 020829 40 0.17193 0.14205 0.11746 0.09722 0.06678 0.08054 0.17120 45 0.13796 0.04761 0.11130 0.08988 0.07265 0.05879 50 0.14071 0.11071 0.03395 0.08720 0.06877 0.05429 0.04291 Present Value of Ordinary Annuity of $1 per Period 4.5% 5% 5.5% 6% 6.5% 7% Periods 4.0% 0.93897 0.93458 1 0.96154 0.95694 0.94340 0.95238 0.94787 1.80802 2 1.88609 1.87267 1.85941 1.83339 1.82063 1.84632 2 62432 3 2.74896 2.67301 2.77509 2.72325 2.64848 2 69793 4 3.62990 3.42580 3.38721 3 58753 3 54595 3.50515 3.46511 4.21236 5 4.10020 4.15568 4.45182 432948 4 27028 4.38998 6 5.24214 5.15787 4.76654 5.07569 4.99553 4.84101 4.91732 instructions Present Value Tables Chart of Accounts Houma Fimal Questions Present Value Tables 13 9.98565 9.68285 9.39357 9.11708 8.85268 8.59974 8.35765 14 10.56312 10122283 9.89864 9.58965 9.29498 9.01384 8.74547 15 11.11839 10.73955 10.37966 10.03758 9.71225 9.40267 9.10791 16 11.65230 11:23402 10.83777 10.46216 10.10590 9.76776 9.44665 17 12/16567 11.70719 11 27407 10.86461 10.47726 10.11058 9.76322 18 12.65930 12.15999 11.68959 11.24607 10.82760 10.43247 10.05909 19 13.13394 12.59329 12.08532 11.60765 11.15812 10.73471 10.33560 20 13.59033 13.00794 12.46221 11.95038 11.46992 11 01851 10.59401 21 14.02916 13.40472 12.82115 12.27524 11.76408 11.28498 10.83553