On January 1, 2022, Richie, Inc. issued $4,800,000 par value, 4%, 5-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1, 2022. The market rate of interest on the date of the bond issue was 8% Future Value of $1 table Future Value of an Ordinary Annuity table Future Value of an Annuity Due table Present Value of $1 table Present Value of an Ordinary Annuity table Present Value of an Annuity Due table Read the requirements Requirement a. Determine the issue price of the debt. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five de your final answers to the nearest whole dollar) The issue price of the debt = Requirement b. Prepare the amortization table for the bond issue through January 1, 2025, assuming that the effective interest rate method of amortization is used. (Round each calculation to the nearest whole number and then use the rounded value for each subsequent calculation i Cash Effective Discount/Premium Carrying Date Interest Interest Amortization Value January 1, 2022 July 1, 2022 January 1, 2023 July 1, 2023 January 1, 2024 July 1, 2024 January 1, 2025 Requirement c. Prepare the journal entries to record the bond issue and the first interest entry. Assume that the company uses a premium or discount account if needed. (Round your answers to the nearest whole dollar. Record debits first, then credits. Exclude explanations from any Begin by recording the issuance of the bonds payable. Account January 1, 2022 On January 1, 2022, Richie, Inc. issued $4,800,000 par value, 4%, 5-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1, 2022. The market rate of interest on the date of the bond issue was 8% Future Value of $1 table Future Value of an Ordinary Annuity table Future Value of an Annuity Due table Present Value of $1 table Present Value of an Ordinary Annuity table Present Value of an Annuity Due table Read the requirements Requirement a. Determine the issue price of the debt. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five de your final answers to the nearest whole dollar) The issue price of the debt = Requirement b. Prepare the amortization table for the bond issue through January 1, 2025, assuming that the effective interest rate method of amortization is used. (Round each calculation to the nearest whole number and then use the rounded value for each subsequent calculation i Cash Effective Discount/Premium Carrying Date Interest Interest Amortization Value January 1, 2022 July 1, 2022 January 1, 2023 July 1, 2023 January 1, 2024 July 1, 2024 January 1, 2025 Requirement c. Prepare the journal entries to record the bond issue and the first interest entry. Assume that the company uses a premium or discount account if needed. (Round your answers to the nearest whole dollar. Record debits first, then credits. Exclude explanations from any Begin by recording the issuance of the bonds payable. Account January 1, 2022
