Instructions:

Complete all required journal entries for year 2020.

Data:

On June 30th 2020 Nala Inc. issued $3,000,000 of four-year, 14% percent bonds, with interest payable semiannually on December 31st and June 30th at a market rate of 12% percent.

Present value of an annuity of $1 at compound interest:

Periods

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

10.0%

11.0%

12.0%

13.0%

1

0.96154

0.95694

0.95238

0.94787

0.94340

0.93897

0.93458

0.90909

0.90090

0.89286

0.88496

2

1.88609

1.87267

1.85941

1.84632

1.83339

1.82063

1.80802

1.73554

1.71252

1.69005

1.66810

3

2.77509

2.74896

2.72325

2.69793

2.67301

2.64848

2.62432

2.48685

2.44371

2.40183

2.36115

4

3.62990

3.58753

3.54595

3.50515

3.46511

3.42580

3.38721

3.16987

3.10245

3.03735

2.97447

5

4.45182

4.38998

4.32948

4.27028

4.21236

4.15568

4.10020

3.79079

3.69590

3.60478

3.51723

6

5.24214

5.15787

5.07569

4.99553

4.91732

4.84101

4.76654

4.35526

4.23054

4.11141

3.99755

7

6.00205

5.89270

5.78637

5.68297

5.58238

5.48452

5.38929

4.86842

4.71220

4.56376

4.42261

8

6.73274

6.59589

6.46321

6.33457

6.20979

6.08875

5.97130

5.33493

5.14612

4.96764

4.79877

9

7.43533

7.26879

7.10782

6.95220

6.80169

6.65610

6.51523

5.75902

5.53705

5.32825

5.13166

10

8.11090

7.91272

7.72173

7.53763

7.36009

7.18883

7.02358

6.14457

5.88923

5.65022

5.42624

Present value of a $1 at compound interest:

Periods

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

10.0%

11.0%

12.0%

13.0%

1

0.96154

0.95694

0.95238

0.94787

0.94340

0.93897

0.93458

0.90909

0.90090

0.89286

0.88496

2

0.92456

0.91573

0.90703

0.89845

0.89000

0.88166

0.87344

0.82645

0.81162

0.79719

0.78315

3

0.88900

0.87630

0.86384

0.85161

0.83962

0.82785

0.81630

0.75131

0.73119

0.71178

0.69305

4

0.85480

0.83856

0.82270

0.80722

0.79209

0.77732

0.76290

0.68301

0.65873

0.63552

0.61332

5

0.82193

0.80245

0.78353

0.76513

0.74726

0.72988

0.71299

0.62092

0.59345

0.56743

0.54276

6

0.79031

0.76790

0.74622

0.72525

0.70496

0.68533

0.66634

0.56447

0.53464

0.50663

0.48032

7

0.75992

0.73483

0.71068

0.68744

0.66506

0.64351

0.62275

0.51316

0.48166

0.45235

0.42506

8

0.73069

0.70319

0.67684

0.65160

0.62741

0.60423

0.58201

0.46651

0.43393

0.40388

0.37616

9

0.70259

0.67290

0.64461

0.61763

0.59190

0.56735

0.54393

0.42410

0.39092

0.36061

0.33288

10

0.67556

0.64393

0.61391

0.58543

0.55839

0.53273

0.50835

0.38554

0.35218

0.32197

0.29459