! Required information (The following information applies to the questions displayed below.] On January 1, 2019, Learned Inc, issued $15 million face amount of 20-year, 18% stated rate bonds when market interest rates were 20%. The bonds pay interest semiannually each June 30 and December 31 and mature on December 31, 2038. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.) Required: a. Calculate the proceeds (issue price) of Learned 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. Enter your answers in dollars, rather than in millions of dollars.) Answer is complete but not entirely correct. Proceeds $ 13,891,785 ! Required information [The following information applies to the questions displayed below.] Evans Ltd. publishes a monthly newsletter for retail marketing managers and requires its subscribers to pay $48 in advance for a one-year subscription. During the month of August 2019, Evans Ltd. sold 160 one-year subscriptions and received payments in advance from all new subscribers. Only 85 of the new subscribers paid their fees in time to receive the August newsletter; the other subscriptions began with the September newsletter. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.) b. Calculate the amount of subscription revenue earned by Evans Ltd. during the year ended December 31, 2019, for these 160 subscriptions sold in August 2019. $ Revenue earned during August Revenue earned from September-December Total subscription revenue earned during 2019 from August 2019 sales 3401 1,360 1,700 $ Required information [The following information applies to the questions displayed below.) On January 1, 2019, Learned Inc, issued $15 million face amount of 20-year, 18% stated rate bonds when market interest rates were 20%. The bonds pay interest semiannually each June 30 and December 31 and mature on December 31, 2038. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.) b-2. Assume instead that the proceeds were $15,421,000. Record the journal entry to show the payment of semiannual interest and the related premium amortization on June 30, 2019, assuming that the premium of $421,000 is amortized on a straight-line basis. (Enter your answers in dollars, rather than in millions of dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) * Answer is not complete. No Event General Journal Debit Credit 1 1 Interest expense Interest payable Cash x ! Required information (The following information applies to the questions displayed below.] On January 1, 2019, Drennen Inc. issued $4.6 million face amount of 6-year, 18% stated rate bonds when market interest rates were 16%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2024. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.) b-2. Assume instead that the proceeds were $4,563,000. 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 $37,000 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.) Answer is not complete. No Event Debit Credit 1 1 General Journal Interest expense Cash Discount on bonds payable 414,000 TABLE 6.4 FACTORS FOR CALCULATING THE PRESENT VALUE OF $1 Discount Rate No. of Periods 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 1 2 3 0.980 0.961 0.942 0.924 0.906 0.9615 0.9246 0.8890 0.8548 0.8219 0.9434 0.8900 0.8396 0.7921 0.7473 0.9259 0.8573 0.7938 0.7350 0.6806 0.9091 0.8264 0.7513 0.6830 0.6209 0.8929 0.7972 0.7118 0.6355 0.5674 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 4 5 6 0.888 0.871 7 0.7903 0.7599 0.7307 0.7026 0.6756 8 0.7050 0.6651 0.6274 0.5919 0.5584 0.6302 0.5835 0.5403 0.5002 0.4632 0.853 0.837 0.820 0.5645 0.5132 0.4665 0.4241 0.3855 0.5066 0.4523 0.4039 0.3606 0.3220 0.4104 0.3538 0.3050 0.2630 0.4556 0.3996 0.3506 0.3075 0.2697 0.3704 0.3139 0.2660 0.2255 0.3349 0.2791 0.2326 0.1938 0.1615 9 10 0.2267 0.1911 11 12 13 0.804 0.788 0.773 0.758 0.743 0.6496 0.6246 0.6006 0.5775 0.5553 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 0.1619 0.1372 0.1163 0.0985 0.0835 0.1346 0.1122 0.0935 0.0779 0.0649 14 15 16 0.728 0.714 17 18 0.5339 0.5134 0.4936 0.4746 0.4564 0.700 0.686 0.673 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 0.1631 0.1456 0.1300 0.1161 0.1037 0.1229 0.1078 0.0946 0.0829 0.0728 0.0930 0.0802 0.0691 0.0596 0.0514 0.0708 0.0600 0.0508 0.0431 0.0365 0.0541 0.0451 0.0376 0.0313 0.0261 19 20 21 0.660 0.647 22 0.2942 0.2775 0.2618 23 0.4388 0.4220 0.4057 0.3901 0.3751 0.634 0.622 0.610 0.1987 0.1839 0.1703 0.1577 0.1460 0.1351 0.1228 0.1117 0.1015 0.0923 0.0926 0.0826 0.0738 0.0659 0.0588 0.0638 0.0560 0.0491 0.0431 0.0378 0.0443 0.0382 0.0329 0.0284 0.0245 0.0309 0.0262 0.0222 0.0188 0.0160 0.0217 0.0181 0.0151 0.0126 0.0105 24 25 0.2470 0.2330 30 0.3083 0.2534 35 40 0.552 0.500 0.453 0.410 0.372 0.1741 0.1301 0.0972 0.0727 0.0543 0.2083 0.1712 0.1407 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 0.0070 0.0030 0.0013 0.0006 0.0003 0.0042 0.0017 0.0007 0.0003 0.0001 45 50 TABLE 6.5 FACTORS FOR CALCULATING THE PRESENT VALUE OF AN ANNUITY OF $1 Discount Rate No. of Periods 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 1 2 3 0.980 1.942 2.884 3.808 4.713 0.9615 1.8861 2.7751 3.6299 4.4518 0.9434 1.8334 2.6730 3.4651 4.2124 0.9259 1.7833 2.5771 3.3121 3.9927 0.9091 1.7355 2.4869 3.1699 3.7908 0.8929 1.6901 2.4018 3.0373 3.6048 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 4 5 6 7 8 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 9 10 11 12 13 9.787 10.575 11.348 12.106 12.849 8.7605 9.3851 9.9856 10.5631 11.1184 7.8869 8.3838 8.8527 9.2950 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 14 15 16 17 18 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 19 20 21 6.6870 6.7429 22 23 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 7.8431 5.9731 6.0113 6.0442 6.0726 6.0971 6.7921 6.8351 6.8729 5.3837 5.4099 5.4321 5.4509 5.4669 4.8913 4.9094 4.9245 4.9371 4.9476 24 25 30 35 40 45 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 50