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Exercise 10-8A Computing bond interest and price; recording bond issuance LO C2, P3 Citywide Company issues bonds with a par value of $69,000 on their

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Exercise 10-8A Computing bond interest and price; recording bond issuance LO C2, P3 Citywide Company issues bonds with a par value of $69,000 on their stated issue date. The bonds mature in seven years and pay 9% annual interest in semiannual payments. On the issue date, the annual market rate for the bonds is 8% Table B.1. Table B 2. Table B. 3 and Table 8.4) (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 Req5 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. Par (maturity) value Semiannual Rate Semiannual cash interest payment Number of payments 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 Reg 4 Req 5 Compute the price of the bonds as of their issue date. (Round intermediate calculations to the nearest dollar amount.) Table Values are Based on: Table Value Amount Present Value Cash Flow Par (maturity) value Interest (annuity) Price of bonds View transaction list Journal entry worksheet Record the issue of bonds with a par value of $69,000. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal

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