Name CH14 Graded Written Homework PROBLEM 1 On January 1, 2019 the first day of its fiscal year, Monitors Corporation issued $405.000 of nine-year, 6% bonds when the market rate was 5%, with interest payable semiannually, on June 30 and December 31. The company uses the effective interest rate method to amortize bond discounts and premiums. Calculate the proceeds from the sale of the bonds (selling price) and write your answer on the line provided. Use the present value tables provided in class (also posted in our course D2L shell with the CH14 materials) to make the calculation. (Use the numbers exactly as they appear in the table.) Round to the nearest whole dollar when necessary. You must show your work for any credit to be awarded. Prepare all required journal entries for 2019. How much cash will the company pay to the bond holders during 2019 You must show your work in the space provided below for any credit to be awarded How much interest expense will the company recognize for 2019 You must show your work in the space provided below for any credit to be wwarded At what rate of interest is Monitors Corporation borrowing this money? Justify your answer: How much interest expense will the company recognize over the life of the bond? You must show your work in the space provided below for any credit to be awarded. Discuss when an adjusting journal entry is required with respect to bonds payable? TABLE 4 Present Value of an Ordinary Annuity of $1 (1 + PVA 1.09 1.5% 2.0% 2.5% 3.09 3:59 4.0% 4.5% 5.0% 5.5% 6.0% 1 0. 10 0.98522 0.98039 0.075610.97087090618 096154 0.95694 0.95238 0.94787 0.94340 2 1.97040 1.95588 1.94156 1.92742 1.91347 1.7 1.8860 187267 1.85941 1.84632 183339 3 2.94099 2.91220 2.88388 2.8562 2.62891 2.00164 2.85602 2.82861 2.80164 2.77500 2.74896 2.77500 2.748962.72325 2.723253 2.69793 267301 43.90197 3:85438 3.80773376197 371710 36700362 3 58753354595 3.50515346511 $ 4.8534) 478264 4.71346 4.64583 4.57971 451505 4451824389984.32943 427020 421236 7.01 0.0% 0.0% 100% 11.04 12.09 20.0 093458 0.92393 0.91743 0.00 0.00 80802 178326 1.75911 1.73554712952 262432 257710 253129 2.48685 244 24018 21 3872131213323972 316 3102 41002039927188965 .7079 3. 63 6 7 8 9 10 .79548 5.69719 5.60143 S50813 9.41719 32055 5.24214 5.15787 5.07569 4.99553 4.91732476654 4622854.48592 45526 4.2005 6.72819 6.59821 6.47199 6.34939 6.23028 0.11454 0.00205 5.89270 5.78637 5.68297 5.58238 5.38929520637 5.03293 4.8684271220.50/50 7.65168 7.485937.32548 7.17014 7.01909 6.87396 6.73274 6.59589 6.46321 6.33457 6.20979 5.971305.74664 5.53482 5.33493 5.14612 4.96764 3. 8.56602 8.36052 8.162247.970877.78611 7.60709 7.43533 7.26879 7.10782 6.95220 6.80189 651523624689 5.99525 5.75902 5.53705 5.32825 4.03097 0.47130 0.22218 8.98250 8.75206 8.53020 8.31661 8.11090, 7.21272 7.72173, 7.53763 7.36000 7.02358 6.710006417666.14457 5.88923 565022 410287 11 10.36763 10.07112 9.78685951421 9.252629.00155 0.76048 0.52692 8.30641 8.09254 7.86687 7.49867 7.13396 .00519 6.49506 6.20652 5.93770 4.32706 12 11.25508 10.90751 10.57534 10.25776 0.05400 0.66333 0.38507 0.11858 8.86325 8.61852 8.38334 7.94209 7.53608 7.16073 6.81369 6.49238 6.19437 443972 13 12.13374 11.73153 11.34837 10.98319 10.63496 10.302749.98565 9.68265 0.39357 9.11708 8.85268835765 7.90378 7.48690 7.10336 6.74987 6 42355 453268 14 13.00370 12.34338 12.10625 11.69091 11.29607 10.92052 10.56312 10.222639.89864 9.58965 9.294988.74547 8.24424 7.78615 7.36669 6.98187 6 62817 461057 15 13.86505 13.34323 12.84926 12.38138 11.93794 11 51741 11.11630 10.73955 10.37866 10.01758 9.71225 9.10791 8.559468.06069 7.60608 7.19087 6.81086 467547 16 14.71787 14.13126 13.57771 13.05500 12.56110 1204412 116520 11.23 0.07 .2016 10.1030 4666555137831256 7.82371 7.37916 697399 4.72956 17 15 56225 14.90765 14 29187 13.71220 13.16612 12 651821276567 11. 0 1 . 200. 00047720 76 9 12164 8.54363 8.02155 7.54879 7.11963 477463 18 16 30827 15.67256 14.99203 14 35336 13.75351 13.1093 126 12.131 . 12407007710.00 9.37189 8.75563 8.20141 7.70162 724967431219 19 17 22601 16.42617 15.67846 14.97509 1412300 13. 0 12.5 12 .07 .1501210335 6 0360 895011 836492 783929 736578 43410 2018.04555 17.1664 1635143 15 58916 14.87747 14 21340 1350 13. 10.59401081815 9.12855 851356 7.96133 7469444 m a a nd . 21 18.85698 17.00014 17.01121 16.18455 15.41502 4 . 25 22 02316 2071961 19.52346 18.42438 17.41315 10.40157 15. 00 30 25 80771 2401584 2239646 20.93029 19 6004 v a 0 32 340 29.91585 27.35548 25.10278 23.11477 21.15507 .rar 0.0553 10 0160929224 8.64869 80750275620049112 11.65358 10 67478982258 907704 8.421741431441459 2.404 11 25778 10.27365 942691 86937930551 04 2017 11.92461 10.75736 9.77905 895105247 0 r . 0 5 . TABLE 2 Present Value of $1. PV 70% 1.0% 1.5% 20% 2.5% 3.09 3.55 4.09 4.5% 5.0% 5.5% 60% 101010 0.48922 0.480w 0.97561 0.97087 0.96618 0.96154 0.95694 0.95238 0.94787 0.94340 2 018030 0.97006 0.96117 0.95181 0.94200 0.93351 0.92456 0.91573 0.90703 0.99545089000 70 0.93632 0.942020.92660 0.91514 0.90194 0.00900 0.87630 0.16384 0.15161 0.8392 098043 04218 0.92385 0.90595 0.88640 0.87144 0.05480 0.83056 0.82270 0.807220.79200 $ 0.93167 0.92826 0.40573 0.00385 0.86261 0.14197 002193 0.00245 0.78353 0.76513 0.74726 0.93458 0.87344 0.81630 0.76290 0.71292 80% 9.09 10.09 11.09 12.09 0.92593 0.917430 . Ovo ov o ce 0.85734 0.54166 0.62645081162 0. 1 0.79303 0.77218 0.75131 0.7311 0.73503 0.7064) 0.66301 0.6573 .13 0.61058 0.64093 062092 0.59345 .50 6 7 0.94205 0.91454 0.88797 0.86230 0.8374 0.81350 0.79031 0.76790 0.74622 0.72525 0.92272 0.90103 0.87056 0.84127 0.81309 0.78599 0.75992 0.73483 0.71068 0.68744 0.92340 0.80771 0.85349 0.22075 0.70941 0.75941 0.73069 0.70319 0.67614 0.65160 0.14 0.07439 0.6J676 0.00073 0.76642 0.73373 0.70259 067290 064461 0.6176 0.90329 0.86167 0.82035078120 0.74409 0.70892 0.67556, 0.64393 0.61391 0.5854) 0.70495 0.66506 062741 0.59190 0.55839 0.66634 063017 0.62275 0.58349 0.58201 0.54027 0.54393050025 0.50835 0.46319 0.59627056447 0.54103 0.51316 050187 50187 0.46651 0.46651 0.46043 0.42410 0.42241030554 0.534 0.45166 0.4312 0.43393 0. 0.35216 4 545 0.40388 .03 02790 0.22257 10 0.16151 0.32197 0 11216 0.09346 01 0.06491 1 11 0.09632 0.84093 0.80426 0.70214 0.72242 0.64495 0.64958 0.61620 0.58468 0.55491 0.52679 0.475090.42000 0.38753 0.35049 0.31720 .207 12 0.88745 0.83639 0.78849 0.74356 0.70138 0.66178 0.62460 0.50966 0.55684 0.52598 0.49697 0.44401 0.39711 0.35553 0.31863 0.28584 0.25668 13 0.87866 0.82403 0.77303 0.72542 0.68095 0.63940 060057 0.54427 0.53032 0.49856 0.46884 0.41496 0.36770 0.32618 0.20966 0.25751 022917 14 0.86996 0.81185 0.75788 0.70773 0.60112 061778 0.57748 0.5397 0.50507 0.47257 044230 0.30782 0.34046 0.20925 0.26333 0.2119 020462 15 0.86135 0.79985 0.74301 0.69047 0.64186 0.59689 0.55526 0.51672 0.48102 0.44793 0.41727 0.36245 0.31524 0.27454 0.23939 0.20900 0.16270 16 0.65282 0.78803 0.72845 0.87362 0.62317 0.57671 0.53391 0.40447 0.45811 0.42458 0.39365 0.33873 0.29189 0.25187 0.21763 0.16629 0.16312 3 4238 077039 071416 0.65720 0.00502 0.55720 0.51337 0.47318 0.43830 0.40245 0.37136 0.31657 0.27027 023107 0.1774 0.106 3 7 04 70016 0.64117 0.58739 0.53836 0.49363 0.45280 0.41552 0.38107 0.35094 0.29566 0.250250211 0.17 19 0.82774 075361 0.68643 0.62553 0.57029 0.52016 0.4744 0.43330 0.39573 0.36158 0.33051 0.27651 0.23171 0.19449 0.16351 0.11768 0.11611 20 0.81054 0.74247 0.67297 0.61027 0.55368 0.50257 0.45639 0.41464 0.37689 0.34273 0.31180 0.25642 0.21455 0.17843 0.14864 0.12403 0.10367 2 081143 073150 0.05978 0.59539 0.53755 0.4557 0.43883 0.39679 0.35894 0.32486 0.29416 024151 0.19 0.16370 0.13513 0.11178 002256 70257 040054 062172 0.55238 0.40193 0.43746 0.39012 0.34770 0.1007 0.27666 0.24696 0.19715 0.15770 0.12640 0.10151 0.001700 250 .77077 061921 0609530.53939 0.47761 0.005 0.37312 3 2 2223 .233000.16425 0.14602 0.11597 0.00230 0.07361 0.05882 28 0.75684 065910 057437 0.50008 0.43700 30165 0.0034020157 02330 2202 0.17563015040.11591 0.00055 0.06934 0.0508204187 20 0.74934 0.0936 0.56311 0.48666 0.42435 0.10075 0.12045 27002 0.24295 0.21168 0.18456 0.14056 0.10733 0.01215 0.06304004349 00373 30074192 063976 0.55207 0.47074 0.4119 0.35626 0.0002 0.20700 0.25138 020064 0.17411 0.1313 0.09930007537 005731 0.0436800333 054125 0.40511 0. 00 0. 029046 0.25550 0.22036 0.19018 0.16425 0.12277 004202 0.04915052100 400 7165 0.55125 0.45289 037243 0.30656 0.25257 0.002 0.17193 0.74205 0.11746 0.09722 0.00078 0.04603 0.03184 0.02209 0.01532 0.01075 0.05409 0.04507 0.03756 0 9130 0.02608 2 0 1 0 01045 000601 000506 00421 0.00068