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Problem 3:22 Marks) On January 1, 2020, Durden Company issued $5,000,000 face value of 11%, 5-year bonds which provides the bondholders with a 9% market

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Problem 3:22 Marks) On January 1, 2020, Durden Company issued $5,000,000 face value of 11%, 5-year bonds which provides the bondholders with a 9% market rate (effective interest rate). The bends pay semana interest on June 30 and December 31. The following Present value tables are provided for you ws VEVO HOW LOTO Tra Valenterest Factors for Che Dollar Discounted Perear for nerede Periods 40% 45% 3% 6.0% 6.5% 7.0% 10.0% 1 0.96154 0.95230 OTT 0900 V 093858.900 2 0.046 09173 945 016 07345 0.116 0.0 0.76.10.84 0151612085 10 8 731 73119 4 36 377010723 6.79209 0.777120290 0 0 5 23 071) 6313 0.76726 0.72987129 NO. . 0.0 0.250 0.7044 03 04 0.3364 7 1904 T0 01 000 00156 0.41166 . 1.6 6601609146003 650 00 0.40 2018.01.02 2410 10 Tres fra Duller Andrede 4 68% 65% TA 18.046 . 1 I CHICHI THE HELT ON 1 73 344 3.24 TU WT330 W. W.UT3.33 33637 V.1 .2003 1.3634 VJETS Present Value Interest Factors for a One-Dollar Annuity Discounted atk Percent for a periods Periods 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7,0% 10.0% 11.0% 1 0.96154 0.95694 0.95238 0.94787 0.94340 0.93897 0.93458 0.90909 0.90090 2 1.88609 1.87267 1.RS941 1.84632 1.83339 1.82063 1.80802 1.73554 1.71252 3 4 $ 6 2.77509 2.74896 2.72325 2.69793 2.67301 2.64848 2.62432 2.48685 2.44371 3.62990 3.58753 3.54595 3.50515 3.46511 3.42580 3.38721 3.16987 3.10245 4.451K2 438998 4.32948 4.27028 4.21236 4.15568 4.10020 3.79079 3.69590 5.24214 5:15787 5.07569 499553 4.91732 4.84101 4.76634 435526 4.23054 6.00205 5.89270 5.78637 5.68297 5.58238 5.48452 5.38929486842 4.71220 6.73274 6.59589 6,46321 6.33457 6.20979 6,08875 597130533493 5.14612 7.435337.26879 7.10782 6.952206.80169 6.65610 6.51523 5.78902 5.53705 8.11090 791272 7.7217375376) 7.36009 7.18883 7.02358 6.14457 5.88923 7 3 9 10 Instructions: a. Prepare the journal entry at the date of the bond issuance. Use the present value tables and round to the nearest dollar. (6 Marks) b. Prepare the journal entry for the payment of interest and the amortization of the premium on June 30, 2020 (Maria) c. Prepare the journal entry for the payment of interest and the amortization of the premium on December 31, 2020. (Marks) d. How would your answer differ if the effective interest rate is 11% (no calculations required) Marka

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