Exercise 14-18A (Algo) Computing bond interest and price; recording bond issuance LO C2

Citywide Company issues bonds with a par value of $75,000. The bonds mature in five years and pay 10% annual interest in semiannual payments. The annual market rate for the bonds is 8%. (Table B.1, Table B.2, Table B.3, and Table B.4)

Note: 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.