Exercise 14-17A Computing bond interest and price: recording bond issuance LO C2 Citywide Company issues bonds with a par value of $150,000. The bonds mature in five years and pay 10% annual interest in semiannual payments. The annual market rate for the bonds is 8% (Table B1. Table B2 Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the bonds issuance. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the price of the bonds as of their issue date. (Round intermediate calculations to the nearest dollar amount) Amount atile Values are Elased on 10 4.0% cash Flow Table Value Par maturity 150000.0000 Value Interest Century Pride of handa Present Value 159, 124,800,000 * s 80.892 es 19.124 800 000 ABLE B.1 esent Value of 1 p=1/(1+1 Rate 1% 2% Periods 3% 4% 5% 6% 7% 8% 10% 12% 15% 3 4 11 12 13 14 15 16 17 18 19 20 25 30 35 40 0.9901 0.9803 0.9706 0.9610 0.9515 0.9420 0.9327 0.9235 0.9143 0.9053 0.8963 0.8874 0.8787 0.8700 0.8613 0.8528 0.8444 0.8360 0.8277 0.8195 0.7798 0.7419 0.7059 0.6717 0.9804 0.9612 0.9423 0.9238 0.9057 0.8880 0.8706 0.8535 0.8368 0.8203 0.8043 0.7885 0.7730 0.7579 0.7430 0.7284 0.7142 0.7002 0.6864 0.6730 0.6095 0.5521 0.5000 0.4529 0.9700 0.9426 0.9151 0.8885 0.8626 0.8375 0.8131 0.7894 0.7664 0.7441 0.7224 0.7014 0.6810 0.6611 0.6419 0.6232 0.5050 0.5874 0.5703 0.5537 0.4776 0.4120 0.3554 0.3066 0.9615 0.9246 0.8890 0.8548 0.8219 0.7903 0.7599 0.7307 0.7026 0.6756 0.6496 0.6246 0.6006 0.5775 0.5553 0.5339 0.5134 0.4936 0.4746 0.4564 0.3751 0.3083 0.2534 0.2003 0.9524 0.9070 0.8638 0.8227 0.7835 0.7462 0.7107 0.6768 0.6446 0.6139 0.5847 0.5568 0.5303 0.5051 0.4810 0.4581 0.4363 0.4155 0.3957 0.3769 0.2953 0.2314 0.1813 0.1420 0.9434 0.8900 0.8395 0.7921 0.7473 0.7050 0.6651 0,6274 0.5919 0.5584 0.5268 0.4970 0.4688 0.4422 0.4173 0.3936 0.3714 0.3503 0.3305 0.3118 0.2330 0.1741 0.130 0.0972 0.9346 0.8734 0.8163 0.7629 0.7130 0.6663 0.6227 0.5820 0.5439 0.5083 0.4751 0.4440 0.4150 0.3878 0.3624 0.3387 0.3166 0.2959 0.2765 0.2584 0.1842 0.1314 0.0937 0.0668 0.9259 0.8573 0.7938 0.7350 0.6806 0.6302 0.5835 0.5403 0.5002 0.4632 7.4289 0.3971 0.3677 0.3405 0.3152 0.2919 0.2703 0.2502 0.2317 0.2145 0.1460 0.0994 0.0676 0.0450 0.9174 0.8417 0.7722 0.7084 0.6499 0.5953 0.5470 0.5019 0.4604 0.4224 0.3875 0.3555 0.3262 0.2992 0.2745 0.2519 0.2311 0.2120 0.1945 0.1784 0.1160 00754 0.0490 0.0318 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 0.4665 0.4241 0.3855 0.3505 0.3186 0.2997 0.2633 02394 0.2176 0.1978 0.1799 0.1635 0.1486 0.0923 0.0573 0.0356 0.0221 0.8929 0.7972 0.7118 0.6355 0.5674 0.5056 0.4523 0.4039 0.3606 0.3220 0.2875 0.2567 0.2292 0.2046 0.1827 0.1631 0.1456 0.1300 0.1161 0.1037 0.0588 0.0334 0.0189 0.0107 0.8696 0.7561 0.6575 0.5718 0.4972 0.4323 0.3759 0.3269 0.2843 0.2472 0.2149 0.1869 0.1625 0.1413 0.1229 0.1059 0.0929 0.0808 0.0703 0.0611 0.0304 0.0151 0.0075 0.0037 Used to compute the present Vale of a known future amountample How Doch wad you need to invest today 10 pund semasa o acom 5.000 in 6 yea om today Using the factors 12 and 52 scntiannuale dei the 5568. You wdldred to in t 53.754 155.000X0.5568 TABLE B.21 Future Value of 1 f= (1 + Rate Periods 2% 3% % 5% 6% 7% 8% 9% 10% 12% 15% 0 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 35 40 1.0000 1.0100 1.0201 1.0303 1.0406 1.0510 1.0615 1.0721 1.0829 1.0937 1.1046 1.1157 1.1268 1.1381 1.1495 1.1610 1.1726 1.1843 1.1961 1.2081 1.2202 1.2824 13478 1.4166 1.6889 1.0000 1.0200 1.0404 1.0512 1.0824 1.1041 1.1262 1.1487 1.1717 1.1951 1.2190 1.2434 1.2682 1.2936 1.3195 1.3459 1.3728 1.4002 1.4282 1.4568 1.4859 1.6406 1.81:14 1.9999 2.2080 1.0000 1.0300 1.0609 1.0927 1.1255 1.1593 1.1941 1.2299 1.2668 1.3048 1.3439 1.3842 1.4258 1.4685 1.5126 1.5580 1.6047 1.6528 1.7024 1.7535 1.8061 2.0938 24273 2.8139 3.2620 1.0000 1.0400 1.0816 1.1249 1.1699 1.2167 1.2653 1.3159 1.3686 1.4233 1.4802 1.5395 1.6010 1.6651 1.7317 1.8009 1.8730 19479 2.0258 2.1068 2.1911 2.6658 3.2434 3.9461 4.9010 1.0000 1,0000 1.0500 1.0500 1.1025 1.1236 1.1576 1.1910 1.2155 1.2625 1.2763 1.3382 1.3401 1.4185 1.4071 1.5036 1.4775 1.5938 1,5513 1.6895 1.6289 1.7908 1.7103 1.8983 1.7959 2.0122 1.8856 2.1329 1.9799 22609 2.0789 2.3966 2.1829 2.5404 22920 2.6928 24066 2.8543 2.5270 3.0256 2.6533 3.2071 3.3864 4.2919 4.3219 5.7435 5.5160 7.6861 70400 10.2857 1.0000 1.0700 1.1449 1.2250 1.3108 1.4026 1.5007 1.6058 1.7182 1.8385 1.9672 2.1049 2.2522 2.4098 25785 2.7590 2.9522 3.1588 3.3799 3.6165 3.3697 54274 7.6123 10 6766 14 9745 1.0000 1.0800 1.1664 1.2597 1.3505 1.4693 1.5869 1.7138 1.8509 1.9990 2.1589 2.3316 2.5182 2.7196 2.9372 3.1722 3.4259 3.7000 3.9960 4.3157 4.6610 6.8485 10.0627 14.7853 21.7245 1.0000 1.0900 1.1881 1.2950 1.4116 1.5386 1.6771 1.8280 1.9926 2.1719 2.3674 2.5804 2.8127 3,0658 3.3417 3.6425 3.9703 4,3276 4.7171 5.1417 5.6044 8.6231 13.2677 20.4140 31.4094 1.0000 1.1000 1.2100 1.3310 1.4641 1.6105 1.7716 1.9487 2.1436 2.3579 2.5937 2.8531 3.1384 3.4523 3.7975 4.1772 45950 5.0545 5.5599 6.1159 6.7275 10.8347 17.4494 28. 1024 45.2593 1.0000 1.1200 1.2544 1.4049 1.5735 1.7623 1.9738 2.2107 2.4760 2.7731 3.1058 3.4785 3.8960 4.3635 4.8871 5.4736 6.1304 6.8650 7.5900 8.6128 9.6463 17.0001 29.9599 52.7996 93.0510 1.0000 1.1500 1.3225 1.5209 1.7490 20114 2.3131 26600 3.0590 3.5179 4.0456 4.6524 5.3503 6.1528 7.0757 8.1371 9.3576 10.7613 12.3755 14.2318 16.3665 32.9190 66 2118 133.1755 267.8535 Used to compute the future value of a knows present monteral What is the value of 53.000 imestad today at compounded quarterly for years? Uning the factors of 20 quantly paids and a quarterly interese of the 49. The scumulated value in St.457 70450,000 1.4859) e-1-a+o- TABLE B.3 Present Value of an Annuity of 1 Rate Periods 1% 2% 3% % 5% 6% 7% 8% 9% 10% 12% 15% 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 35 40 0.9901 1.9704 29410 3.9020 4.8534 5.7955 6.7282 7.6517 8,5660 9.4713 10.3676 11.2551 12.1337 13.0037 13.8651 14 7179 15.5623 16.3983 17.2260 18.0456 22.0232 25.8077 29.4086 328347 0.9804 1.9416 2.8839 3.8077 4.7135 5.6014 6.4720 7.3255 8.1622 8.9826 9.7868 10.5753 11.3484 12.1062 12.8493 13,5777 14.2919 14.9920 15.6785 16.3514 19.5235 22.3965 24.9986 27.3555 0.9709 1.9135 2.8286 3.7171 4.5797 5.4172 6.2303 7.0197 7.7861 8.5302 9.2526 9.9540 10.6350 11.2961 11.9379 12.5611 13.1661 13.7535 14 3238 14.8775 17.4131 19 6004 21.4872 23.1148 0.9615 1.8851 2.7751 3.6299 4.4518 5.2421 6.0021 6.7327 7.4353 8.1109 8.7605 9.3851 9.9856 10.5631 11.1184 11.6523 12.1657 12.6593 13.1339 13.5903 15.6221 17.2920 18.6645 19,7928 0.9524 1.8594 2.7232 3,5460 4.3295 5,0757 5.7854 6.4632 7.1078 7.7217 8.3064 8.8633 9.3936 9.8986 10.3797 10.8378 11.2741 11.6896 12.0853 12.4622 14.0939 15.3725 16.3742 17.1591 0.9434 1.8334 2.6730 3.4651 4.2124 4.9173 5.5824 6.2098 6.8017 7.3601 7.8869 8.3838 8.8527 9 2950 9.7122 10.1059 10.4773 10.8276 11.1581 114699 12.7834 13.7648 14.4982 15.0463 0.9346 1.8080 2.6243 3.3872 4.1002 4.7665 5.3893 5.9713 6.5152 7.0236 7.4987 7.9427 8.3577 8.7455 9.1079 9.4466 9.7632 10.0591 10.3856 10.5940 11.6536 12.4090 12.9477 13.3317 0.9259 1.7833 2.5771 3.3121 3.9927 4.6229 5.2064 5.7466 6.2469 6.7101 7.1390 7.5361 7.9038 8.2442 8,5595 8.8514 9.1216 9.3719 9.6036 9.8181 10.6748 11.2578 11.6546 11.9246 0.9174 1.7591 2.5313 3.2397 3.8897 4.4859 5,0330 5.5348 5.9952 6.4177 6,8052 7.1607 7.4869 7.7862 8.0607 8.3125 8.5436 8.7556 8.9501 9.1285 9.8226 10.2737 10.5668 10.7574 0.9091 1.7355 2.4869 3.1699 3.7908 4.3553 4.8584 5.3349 5.7590 6.1446 6.4951 6,8137 7.1034 7.3567 7.6061 7.8237 8.0216 8.2014 8.3649 8.5136 9.0770 9.4269 9.6442 9.7791 0.8929 1.6901 24018 3.0373 3,6048 4.1114 45638 4.9676 5.3282 5.6502 5.9377 6.1944 6.4235 6.6282 6.8109 6.9740 7.1196 7.2497 7.3658 7.4694 7.8431 8.0552 8.1755 8.2438 0.8696 1.6257 22832 2.8550 3.3522 3.7845 4.1604 4.4873 4.7716 5.0188 5.2337 5.4206 5.5831 5.7245 5.8474 5.9542 6.0472 6.1280 6.1982 6.2593 6.4641 6.5660 6.6166 6.6418 Used to calculate the present value of a rental payments made at the end of diepes What is the present value of $2.000 per year for to years assuming an annual interest rate for in= MEYXthe PV 6417 Servarlo he coulent or $12.835 today $2.000 6.4177 f=[(1+1)-1 yi TABLE B.4 Future Value of an Annuity of 1 Rate Periods 1% 2% 3% 4% 5% 6% 7% 8% 10% 12% 15% 1 2 3 4 5 1.0000 20800 32464 45061 6 7 8 9 10 11 12 13 1.0000 1.0000 2.0100 2.0200 3.0301 3.0604 4.0604 4.1216 5.1010 5.2040 6.1520 6.3081 7.2135 7.4343 8.2857 8.5830 9.3685 9.7546 10.4622 10.9497 11.5668 12.1687 126825 13.4121 13.8093 14.6803 14.9474 15.9739 16.0969 17.2934 172579 18.5393 18.4304 20.0121 19.6147 21.4123 20.8109 22.8406 22.0190 24.2974 28.2432 32 0303 34.7849 40.5681 41.6603 49.9945 48.8864 60.4020 1.0000 2.0300 3.0909 4.1836 5.3091 6.4684 7.6625 8.8923 10.1591 11.4639 12.8078 14.1920 15.6178 17.0863 18.5989 20.1569 21.7616 23.4144 25. 1169 26.8704 36.4593 475754 60.4621 75.4013 1.0000 1.0000 2.0400 20500 3.1216 3.1525 42465 4.3101 5,4163 5.5256 6.6330 6.8019 7.8983 8.1420 9.2142 9.5491 10.5828 11.0266 12.0061 12.5779 13.4864 14.2068 15.0258 15.9171 16.6268 17.7130 18.2919 19.5986 20.0236 21.5786 21.8245 23.6575 23.6975 25.8404 25.6454 28.1324 27.6712 30.5390 29.7781 33 0660 41.6459 47.7271 56.0849 66.4388 73.6522 90.3203 95.0255 120.7998 1.0000 2.0600 3.1836 4.3746 5.6371 6.9753 8.3938 9.8975 11.4913 13.1808 14.9716 16.8699 18.8821 21.0151 23.2760 25.6725 28.2129 30.9057 33.7600 36.7856 54.8645 79.0582 111.4348 154.7620 1.0000 2.0700 3.2149 4.4399 5.7507 7.1533 8,6540 10.2598 11.9780 13.8164 15.7836 17.8885 20.1406 22.5505 25.1290 27.8881 30.8402 33.9990 37 3790 40.9955 53.2490 94.4608 138.2369 199,6351 5.8666 7.3359 8.9228 10.6356 12 4876 14.4886 16.6455 18.9771 21.4953 24 2149 27.1521 30.3243 33.7502 37.4502 41.4463 45.7620 23.1059 113.2832 1723168 259.0565 1.0000 1.0000 1.0000 2.0900 2. 1000 2.1200 3.2781 33100 3.3744 4.5731 4.6410 4.7793 5,9847 6.1051 6.3528 7.5233 7.7156 8.1152 9.2004 9.4872 10.0890 11.0285 11.4359 12.2997 130210 13.5795 14.7757 15.1929 15.9374 17.5487 17.5603 18.5312 20.6546 20.1407 21.3843 24.1331 22.9534 24.5227 28.0291 26.0192 27.9750 32.1926 29.3609 31.7725 37.2797 33.0034 35.9497 42.7533 36.9737 40.5447 48.8837 41.3013 45.5992 55,7497 460185 51.1591 63.4397 51.1601 57.2750 72.0524 84.7009 98.3471 133.3339 136.3075 164 4940 241.3327 215 7108 271.02444316635 3378824 442.5926 767.0914 1.0000 2.1500 3.4725 4.9934 6,7424 8.7507 11.0669 13.7268 16.7858 20.3037 24.3493 29.0017 343519 40.5047 47.5804 55.7175 65.0751 75 8364 88.2118 102.4436 212.7930 434.7451 881.1702 1.779.0903 15 16 17 18 19 20 25 30 35 40 Used to calculate the future value of a series of equal payments made the end och perample: What is the futute value of 54.000 per year for your assuming an annual interest rate of the TV is 7.3359, 54.00 per year for accums $29,540 x 783159