Hartford Research issues bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds have a $40,000 par value and an annual contract rate of 10%, and they mature in 10 years. (Table B.1. Table B. 2. Table B.3. and Table B.4) (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations. Round your 'Present Value' answers to the nearest whole dollar.) Required: Consider each of the following three separate situations. 1. The market rate at the date of issuance is 8%. (a) Complete the below table to determine the bonds' issue price on January 1, 2017 (b) Prepare the journal entry to record their issuance. 2. The market rate at the date of issuance is 10% (a) Complete the below table to determine the bonds' issue price on January 1, 2017 (b) Prepare the journal entry to record their issuance. 3. The market rate at the date of issuance is 12%. (a) Complete the below table to determine the bonds' issue price on January 1, 2017 (b) Prepare the journal entry to record their issuance. Complete the below table to determine the bonds' issue price on January 1, 2017, if the market rate at the date of issuance is 8%. Table values are based on: Cash Flow Table Value Amount Present Value Par (maturity) value Interest (annuity) Price of bonds Record the issue of bonds with a par value of $40,000 on January 1, 2017. Assume that the market rate of interest at the date of issue is 8%. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01, 2017 Complete the below table to determine the bonds' issue price on January 1, 2017, if the market rate at the date of issuance is 10%. Table values are based on: Cash Flow Table Value Amount Present Value Par (maturity) value Interest (annuity) Price of bonds Record the issue of bonds with a par value of $40,000 on January 1, 2017. Assume that the market rate of interest at the date of issue is 10%. Note: Enter debits before credits. General Journal Debit Credit Date Jan 01, 2017 EEEEEEEEEEE Complete the below table to determine the bonds' issue price on January 1, 2017, if the market rate at the date of issuance is 12% Table values are based on: Cash Flow Table Value Amount Present Value Par (maturity) value Interest (annuity) Record the issue of bonds with a par value of $40,000 on January 1, 2017. Assume that the market rate of interest at the date of issue is 12%. Note: Enter debits before credits. General Journal Debit Credit Date Jan 01, 2017 TABLE B.1 Present Value of 1 p=1/(1+i)" Rate Periods 1% 7% 8% 9% 10% 12% 15% 0 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 08528 OBALA 0.8350 0.8277 0.8195 07798 07419 0.7059 0.6717 0.9804 0.9709 0.9615 0.9612 0.9426 0.9246 0.9423 0.9151 0.8890 0.9238 0.8885 0.8548 0.9057 0.8626 0.8219 0.8880 0.8375 0.7903 0.8706 0.8131 0.7599 0.8535 0.7894 0.7307 0.8368 0.7664 0.7026 0.8203 0 .7441 0.6756 0.8043 0.72240.6496 0.7885 0.7014 0.6246 0.7730 0.6810 0.6006 0.75790 6611 0.5775 0.7430 0.5419 0.5553 0.7284 0.6232 0.5339 0.7142 0.6050 0.5134 0.7002 0.5874 0.4936 06864 0.5703 0.4746 0.6730 0.5537 0.4564 0.6095 0.4776 0.3751 0.5521 0.4120 0.3083 0.5000 0 .3554 0.2534 045290 7066 02082 0.9524 0.9070 08638 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 0.4353 04155 0.3957 0.3769 0.2953 0.2314 0.1813 0 1420 0.9434 0.8900 0.8396 0.7921 0.7473 0.7050 0.6651 0.6274 0.5919 0.5584 0.5268 0.4970 0.4688 0.1423 0.4173 0.3936 0.3714 0.3503 0.3305 0.3118 0.2330 0.1741 0.1301 0.0972 0.9346 0.8734 0.816) 0.7629 0.7130 0.6663 0.6227 0.5820 0.5439 0.5083 0.4751 0.4440 0.4150 0.3878 03524 0.3387 0.3166 0.2959 0.2765 0.2584 0.1842 0.1314 0.0937 00668 0.9259 0.8573 0.79 0.7350 0.6806 0.6302 0.5835 0.5403 0.5002 0.4632 0.4289 0.3971 0.3677 0.3405 03152 0.2919 0.2703 0.2502 0.2317 0.2145 0.1460 0.0994 0.0676 00450 0.9174 0.9091 0.8417 0.8264 0.7722 0.7513 0.7084 0.6830 0.6499 0.6209 0.5963 0.5645 0.5470 0.5132 0.5019 0.4665 0 .4604 0.4241 0.4224 0.3855 0.3875 0.3505 0.3555 0.3186 0.3262 0.2897 0.2992 0.2633 0.27450 2394 0.2519 0.2176 0.2311 0.1978 0.2120 0.1799 0.1945 0.1635 0.1784 0.1486 0.1160 0.0923 0.0754 0.0573 0.0490 0.0356 0.0318 00221 0.8929 0.7972 0.7118 0.6355 .5674 0.5066 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 06575 0.5718 0.4972 0.4323 0.3759 0.3269 0.2843 0.2472 0.2149 0.1869 0.1625 0.1413 0.1229 0.1069 0.0929 0.0008 0.0703 0.0611 0.0304 00151 0.0075 00037 Used to come the present o from today? Using the factors of wn future w o meow much you need to me today I comed y boom in 6 years 12 and 12 semanas periods and a miannual rate of 5), the factors 0.556. You would need to invest 52,754x (53000 x 0.3568) TABLE B.2 Future Value of 1 f= (1 + ir Rate Perlods 1% 2% 3% 4% 5% 6% 9% 10% 12% 15% 7 9 1.0000 10000 10000 10000 10000 10000 10000 10000 1.0100 10200 10300 10400 10500 10600 10700 1.0201 10404 106091 0816 1.1025 1.1236 1.1449 1.0303 1.0612 1.0927 1.1249 1.1576 1.1910 1.2250 1.0406 1.0824 1.1255 1.1699 1.2155 1.2625 1.3108 1.0510 1.1041 1.159312167 1.27631.3382 1.4025 1.0615 1.1262 1.1941 1.265313401 1.4185 1.5007 1.0721 1.1487 1.2299 1.315914071 15036 1.6058 10829 1.1717 1.2668 1.3686 1.4775 1.5938 1.7182 1 0937 1.1951 1.3048 1.42331.5513 1.6895 1.8385 1.1046 1.21901.3439 1.4802 1.6289 1.7908 1 0672 1.1157 1.2434 1.3842 1.5395 1.7103 18983 2.1049 1.1268 1.268214258 16010 1.795920122 2.2522 1.1381 1.2935 14685 16651 1.8856 2.1329 24098 1.1495 1.31951.5126 1.7317 1.9799 2.2609 25785 1.1610 1.3459 1.5580 1.8009 20789 2.3966 2.7590 1.1726 1.3728 1.6047 1.8730 2.1829 2.5404 2.9522 1.13 1.4002 16528 1.947922920 2.6928 11538 1.1951 14282 1.7024 20258 2.4066 2.8543 13799 1.2001 1.4568 1.7535 2.1058 25270 3.0256 3.6165 1220214859 18061 2.1911 26533 3.2071 38691 1.2824 1.6406 2.0938 2.6658 3.3854 4.2919 5.4274 1.3478 1.8114 24273 3.2434 432195.7435 7.6123 14166 1.9999 281393.9451 5.5160 76861 10.6706 1429 2208012620 4801070400 10.2857149745 10000 1.0000 10800 1.0900 1.1664 1.1881 1.2597 1.2950 1.3605 1.4116 1.4693 1.5386 1.5869 1.6771 1.7138 1.8280 1.8509 1.9926 1.9990 2.1719 2.1589 2.3674 2 3316 2.5804 25182 28127 27195 3.0658 29372 3.3417 3.1722 3.6425 3.4259 3.9703 3.7000 4.3276 3.9960 4.7171 4.3157 5.1417 4.6610 5.6014 6.8405 8.6231 10.0627 13.2677 14.785320.4140 21.724531.4094 1.0000 1.1000 12100 13310 1.4641 16105 1.7716 1.9487 21426 2.3579 2.5937 2.8531 11184 3.4523 3.7975 4.1772 4.5950 5.0545 5.5509 61159 67275 108 347 17.4494 28 1024 45 2500 1.0000 1.1200 1.2544 1.4049 1.5735 1.7623 1.9738 2.2107 24760 2.7731 3.1058 34785 28960 4.3635 4.8871 5.4736 61304 68660 7.6900 8.6128 9.6453 17 0001 29.9599 52.7996 930510 1.0000 1.1500 1.3225 1.5209 1.7490 20114 23131 2.6600 3.0590 3.5179 4.0456 4.6524 5.3503 6.1528 7.0757 8.1371 91575 10.7513 12.3755 14.2318 16.3665 32.9190 66.2118 132.1755 267.8635 13 18 Used to compute the future value of new present amount. For example: What is the accumulated value of $3,000 invested today at 8 compounded quarterly for 5 years Using the factors of 20 andis 2 (20 quarterly periods and quarterly interest rate of 25).the factor is 14:59. The secumulated value is $4437.70 5.000 LAS TABLE B.3 Present Value of an Annuity of 1 Pate Periods 1 2 3 6% 7% 10% 12% 15% 0.9901 09804 0.97090 9615 0.9524 0.9434 0 93.45 0.9259 09174 09091 0.9929 0.8596 1.9704 1.9416 1.9135 1.8861 1.8594 18334 1.8080 1.7833 1.7591 1.7355 1.6901 1.6257 2941028899 2.8286 27751 2723226730262432.5771 25313 2.4869 2.4018 2.2832 3 9020 38077 3.7171 36299354603465117872 3.3121 32397 3.169930373 2.8550 48534 471354.5797 44518 4.3295 42124 41002 3.992738897 37908 36048 33522 5.7955 5.6014 5.4172 524215.0757 4.91734.7665 4.62294485943553 4.1114 3.7845 6.7282 5.4720 62302 6.0021 5.7864 5.5824 53893 5.2064 50330 48684 4.5638 41604 76517 73255 70197 737 6461262099 59713 5.7466 5534357149 49676 4.4873 3.5660 8.1622 7.7861 7 4353 7.1078 6.8017 65152 6 2469 5.9952 5.7590 5.3282 4.7716 9.4713 0 826 5102 1109 7.7217 7.3601 70236 6.7101 6.4177 6.1446 5.65025.0188 10.3676 9.7868 9.2526 87605 8.3064 7886974987 7.1390 5.80526.4951 5.9377 5.2337 11.2551 10.5753 9.9540938518.86338.383879427 75361 7160768137 6.1944 54206 12.1337 11 3484 10.6350 9.9856 9.3936 8.8527 83577 79038 748697.1034 6.4235 5.5831 130037 12 1052 11.2961 10.5631 9.8986 9.2950 8.74558 .2442 7.786273667 66282 5.7245 138651 12 8493 119379 11.1184 10.37979 .7122 1070 8.5505 806077.6061 68109 58474 14 7179 13.5777 12 5611 11.6523 10 3278 10.1059 94456 15 5623 14 291913.1661 12.1657 11.2741 10.4773 9.7632 9.1216 35436 80216 7.1196 6.0472 16 3983 149920 13.753512659311.6896 10.8276 10.0591 9.3719 8.75568.2014 7.2497 6.1280 17 2260 15 5785 14 3238 13.1339 12.0853 11.1581 1 0 3356 9.6036 89501 836,49 73658 6.1982 18.0456 16 3514 14.8775 13.5903 12.4622 11.469) 10.59-40 9.8181 9.1285 8 .5136 7.4694 6.2593 220222 19.5235 17.4131 15 6221 14.09.39 12.7834 11.6536 10.6748 9 8226 90770 78431 6.4641 25 8077 22.3965 19.6004 17.2920 15.3725 13.7648 12.4090 11.2578 10.2737 9.4269 80552 6.5660 29 4085 24 9986 214872 18 6646 16.3742 14 498212.9477116546 10.5668 96442 1755 6.6166 328347 273555 23.114319.2928 17.1591 150463 13331711.9245 10.7574 97791 8.2438 66418 n Used to calculate the e a interest of v e of a wri For 101 q ual payments made at the end of each period. For emple: What is the value of 2.000 per you for 10 years awumiag , the PV factor is 6,4177.52.000 per year for 10 years is the equivalent of $12.5 day (9.000 x 64177) f=[(1 + i)" - 1yi TABLE B.45 Future Value of an Annuity of 1 Rate Periods 1% 2% 3% 4% 5% 6% 71% 9% 10% 12% 15% 1.0000 1.000 1.0000 1.0000 1.0000 1.0000 10000 2.0100 20200 2.0300 2.0400 2.0500 2.0600 2.0700 3.0301 3.0604 3.0909 3.1836 3.2149 4.0604 4.1216 4.1836 4.2465 4.3101 43746 4.4399 5.1010 5.2040 5.3091 5.4163 5.5256 5,6371 5.7507 6.1520 6.3081 6.4684 6.6330 6.80196.9753 7.1533 7.21357.4343 7.6625 7.89838.142083938 8.6540 8.2857 8.5830 8.8923 9.2142 95491 93975 10.2598 9.3685 9.7546 10.1591 10.5828 11.0266 11.4913 11.9780 10.4622 10.9497 11.4639 12.0061 12.5779 13.1808 13.8164 11.5668 12.1687 12.8078 13.4864 14.2068 14.9716 15.7836 12.6825 13.4121 14.1920 15.0258 15.9171 16,8699 17.5885 13.8093 14.6803 15.6178 16.6268 17.7130 18.8821 20.1406 14.9474 15.9739 17.0863 18.2919 19.5986 21.0151 22.5505 16.0969 17.2934 18.5989 20.0236 21.5786 23.2760 25.1290 17.2579 18.6393 20.1569 21.8245 23.6575 25.6725 27.8881 18.4304 20.0121 21.7616 23.697525.8404 28.212930.8402 19.6147 21.4123 23.4144 25.6454 28.1324 30.9057 33.9990 20.8109 22.8406 25.116927.6712 30.5390 33.7600 37.3790 22.0190 24.2974 26.8704 29.7781 33.0660 36.7856 40.9955 28.2432320303 36.4593 41.6459 47.7271 54.8645 63.2490 34.784940.5681 47.5754 56.084966.4388 79.058294.4608 41.660349.994560.4621 73.652290.3203 111.4348 138.2369 48.8864 60.4020 75.4013 9 5.0255 120.7998 154.7620 199.6351 10000 10000 1.000 1.0000 1.0000 20800 2.0900 2.1000 2.1200 2.1500 3.2464 3.2781 3.3100 3.3744 3.4725 4.5061 4.5731 4.6410 4.7793 4.9934 5.8666 5.9847 6.1051 6.3528 6.7424 7.3359 7.52337.7156 8.1152 8.7537 8.9228 9.2004 9.4872 10.0890 11.0668 10.6366 11.028511.4359 12.2997 13.7268 12.4876 13.0210 13.5795 14.7757 16.7858 14.4866 15.1929 15.9374 17.5487 20.3037 17.5603 18.5312 20.6546 24.3493 20.1407 21.3843 24.1331 29.0017 21.4953 22.9534 24.5227 28.0291 34.3519 24.2149 26.0192 27.9750 32.3926 40.5047 27.1521 29.360931.7725 37.2797 47.5804 30.3243 33.0034 35.949742.7533 55.7175 33.7502 36.9737 40.5447 48.8837 65.0751 37.450241.3013 45.5992 55.7497 75 8364 41.4463 46.0185 51.1591 63.4397 45.7620 51.1601 57.2750 72.0524 102.4436 73.1059 84.700998.3471 133.3339 113.2832 136.3075 164.4940 241.3327 1723168 215.7108 271.02444316635881.1702 259.0565 337.8824 442.5926 767.0914 1,779.0903 14 30 40 Used to calculate the future value of a series of equal payments made at the end of each period. For example: What is the future value of $4,000 per year for annual interest rate of 8. For ( 6,1 8 ). the FV factor is 7.3359. 54,000 per year for 6 years accumulates to $29,343.60 (54.000 x 7.3359). 4000X300 years assuming an