! Required information [The following information applies to the questions displayed below.] On January 1, 2019, Drennen Inc. issued $3.1 million face amount of 10-year, 14% stated rate bonds when market interest rates were 12%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2028. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.) Required: a. Calculate the proceeds (issue price) of Drennen Inc.'s bonds on January 1, 2019, assuming that the bonds were sold to provide a market rate of return to the investor. (Round PV factor to 4 decimal places.) Answer is complete but not entirely correct. Proceeds $ 3,636,508 ap b-2. Assume instead that the proceeds were $3,064,000. Record the journal entry to show the payment of semiannual interest and the related discount amortization on June 30, 2019, assuming that the discount of $36,000 is amortized on a straight-line basis. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet TABLE 6.4 FACTORS FOR CALCULATING THE PRESENT VALUE OF $1 No. of Periods 2% 6% 8% 14% 16% 18% 20% 1 0.980 0.961 0.942 0.924 0.906 2 3 4 5 0.9615 0.9246 0.8890 0.8548 0.8219 0.9434 0.8900 0.8396 0.7921 0.7473 Discount Rate 10% 12% 0.9091 0.8929 0.8264 0.7972 0.7513 0.7118 0.6830 0.6355 0.6209 0.5674 0.9259 0.8573 0.7938 0.7350 0.6806 0.8772 0.7695 0.6750 0.5921 0.5194 0.8621 0.7432 0.6407 0.5523 0.4761 0.8475 0.7182 0.6086 0.5158 0.4371 0.8333 0.6944 0.5787 0.4823 0.4019 6 7 8 9 10 0.888 0.871 0.853 0.837 0.820 0.7050 0.6651 0.6274 0.5919 0.5584 0.6302 0.5835 0.5403 0.5002 0.4632 0.5645 0.5132 0.4665 0.4241 0.3855 0.5066 0.4523 0.4039 0.3606 0.3220 0.4556 0.3996 0.3506 0.3075 0.2697 0.4104 0.3538 0.3050 0.2630 0.2267 0.3349 0.2791 0.2326 0.1938 0.1615 0.7903 0.7599 0.7307 0.7026 0.6756 0.6496 0.6246 0.6006 0.5775 0.5553 11 12 13 14 15 0.804 0.788 0.773 0.758 0.743 0.5268 0.4970 0.4688 0.4423 0.4173 0.4289 0.3971 0.3677 0.3405 0.3152 0.3505 0.3186 0.2897 0.2633 0.2394 0.2875 0.2567 0.2292 0.2046 0.1827 0.2366 0.2076 0.1821 0.1597 0.1401 0.1954 0.1685 0.1452 0.1252 0.1079 0.3704 0.3139 0.2660 0.2255 0.1911 0.1619 0.1372 0.1163 0.0985 0.0835 0.0708 0.0600 0.0508 0.0431 0.0365 0.1346 0.1122 0.0935 0.0779 0.0649 0.0930 16 17 18 19 20 0.728 0.714 0.700 0.686 0.673 0.5339 0.5134 0.4936 0.4746 0.4564 0.3936 0.3714 0.3503 0.3305 0.3118 0.2919 0.2703 0.2502 0.2317 0.2145 0.2176 0.1978 0.1799 0.1635 0.1486 0.1229 0.1078 0.0946 0.0829 0.0728 0.0802 0.0691 0.0596 0.0514 0.0541 0.0451 0.0376 0.0313 0.0261 0.1631 0.1456 0.1300 0.1161 0.1037 0.0926 0.0826 0.0738 0.0659 0.0588 21 22 23 24 25 0.660 0.647 0.634 0.622 0.610 0.4388 0.4220 0.4057 0.3901 0.3751 0.2942 0.2775 0.2618 0.2470 0.2330 0.1987 0.1839 0.1703 0.1577 0.1460 0.1351 0.1228 0.1117 0.1015 0.0923 0.0638 0.0560 0.0491 0.0431 0.0378 0.0443 0.0382 0.0329 0.0284 0.0245 0.0217 0.0181 0.0151 0.0126 0.0105 0.0309 0.0262 0.0222 0.0188 0.0160 0.0070 0.0030 0.0013 0.0006 0.0003 30 35 40 45 50 0.552 0.500 0.453 0.410 0.372 0.3083 0.2534 0.2013 0.1712 0.1407 0.1741 0.1301 0.0972 0.0727 0.0543 0.0994 0.0676 0.0460 0.0313 0.0213 0.0573 0.0356 0.0221 0.0137 0.0085 0.0334 0.0189 0.0107 0.0061 0.0035 0.0196 0.0102 0.0053 0.0027 0.0014 0.0116 0.0055 0.0026 0.0013 0.0006 0.0042 0.0017 0.0007 0.0003 0.0001 TABLE 6.5 FACTORS FOR CALCULATING THE PRESENT VALUE OF AN ANNUITY OF $1 No. of Periods 2% 4% 6% 14% 16% 18% 20% 1 0.980 1.942 2.884 3.808 4.713 2 3 4 5 0.9615 1.8861 2.7751 3.6299 4.4518 Discount Rate 8% 10% 12% 0.9259 0.9091 0.8929 1.7833 1.7355 1.6901 2.5771 2.4869 2.4018 3.3121 3.1699 3.0373 3.9927 3.7908 3.6048 0.9434 1.8334 2.6730 3.4651 4.2124 0.8772 1.6467 2.3216 2.9137 3.4331 0.8621 1.6052 2.2459 2.7982 3.2743 0.8475 1.5656 2.1743 2.6901 3.1272 0.8333 1.5278 2. 1065 2.5887 2.9906 6 7 8 9 10 5.601 6.472 7.325 8.162 8.983 5.2421 6.0021 6.7327 7.4353 8.1109 4.9173 5.5824 6.2098 6.8017 7.3601 4.6229 5.2064 5.7466 6.2469 6.7101 4.3553 4.8684 5.3349 5.7590 6.1446 4.1114 4.5638 4.9676 5.3282 5.6502 3.8887 4.2883 4.6389 4.9464 5.2161 3.6847 4.0386 4.3436 4.6065 4.8332 3.4976 3.8115 4.0776 4.3030 4.4941 3.3255 3.6046 3.8372 4.0310 4.1925 11 12 13 14 15 9.787 10.575 11.348 12.106 12.849 8.7605 7.8869 9.3851 8.3838 9.9856 8.8527 10.5631 9.2950 11.1184 9.7122 7.1390 7.5361 7.9038 8.2442 8.5595 6.4951 6.8137 7.1034 7.3667 7.6061 5.9377 6.1944 6.4235 6.6282 6.8109 5.4527 5.6603 5.8424 6.0021 6.1422 5.0286 5.1971 5.3423 5.4675 5.5755 4.6560 4.7932 4.9095 5.0081 5.0916 4.3271 4.4392 4.5327 4.6106 4.6755 16 17 18 19 20 13.578 14.292 14.992 15.678 16.351 11.6523 10.1059 12.1657 10.4773 12.6593 10.8276 13.1339 11.1581 13.5903 11.4699 8.8514 9.1216 9.3719 9.6036 9.8181 7.8237 8.0216 8.2014 8.3649 8.5136 6.9740 7.1196 7.2497 7.3658 7.4694 6.2651 6.3729 6.4674 6.5504 6.6231 5.6685 5.7487 5.8178 5.8775 5.9288 5.1624 5.2223 5.2732 5.3162 5.3527 4.7296 4.7746 4.8122 4.8435 4.8696 21 4.8913 4.9094 22 23 24 25 17.011 17.658 18.292 18.914 19.523 14.0292 11.7641 14.4511 12.0416 14.8568 12.3034 15.2470 12.5504 15.6221 12.7834 10.0168 10.2007 10.3711 10.5288 10.6748 8.6487 8.7715 8.8832 8.9847 9.0770 7.5620 7.6446 7.7184 7.7843 6.6870 6.7429 6.7921 6.8351 6.8729 5.9731 6.0113 6.0442 6.0726 6.0971 5.3837 5.4099 5.4321 5.4509 5.4669 4.9245 4.9371 4.9476 7.8431 30 35 40 45 50 22.396 24.999 27.355 29.490 31.424 17.2920 13.7648 18.6646 14.4982 19.7928 15.0463 20.7200 15.4558 21.4822 15.7619 11.2578 11.6546 11.9246 12.1084 12.2335 9.4269 9.6442 9.7791 9.8628 9.9148 8.0552 8.1755 8.2438 8.2825 8.3045 7.0027 7.0700 7.1050 7.1232 7.1327 6.1772 6.2153 6.2335 6.2421 6.2463 5.5168 5.5386 5.5482 5.5523 5.5541 4.9789 4.9915 4.9966 4.9986 4.9995