Exercise 10-3A Computing bond interest and price; recording bond issuance LO C2 Bringham Company issues bonds witha 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 B1, 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. Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 Req 5 What is the amount of each semiannual interest payment for these bonds? How many semiannual interest payments will be made on these bonds over their life? Use the interest rates given to select whether the bonds are issued at par, at a discount, or at a premium. Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 Req 5 What is the amount of each semiannual interest payment for these bonds? How many semiannual interest payments will be made on these bonds over their life? Use the interest rates given to select whether the bonds are issued at par, at a discount, or at a premium. Semiannual Rate Semiannual cash interest payment Par (maturity) value 670,000 x 5.0% $ 33,500 Number of payments 18 Whether the bonds are issued at par, at a discount, or at a premium? At a discount Reg 4> Req 1 to 3 Req 4 Req 5 Compute the price of the bonds as of their issue date. (Round all table values to 4 decimal places, and use the rounded table values in calculations. Round intermediate calculations to the nearest dollar amount.) Table Values are Based on: 18 n= 5.0% i Cash Flow Table Value Amount Present Value Par (maturity) value Interest (annuity) Price of bonds $ 670,000 33,500 X $ X $ 0 Req > Req 1 to 3 Journal entry worksheet 1 Record the issue of bonds with a par value of $670,000 for cash. Note: Enter debits before credits. General Journal Transaction Debit Credit Bonds payable 670,000 Record entry Clear entry View general journal