Stressless, Inc. is authorized to issue 5%, 10-year bonds payable. On January 1, 2024, when the market interest rate is 12%,the company issues $500,000 of the bonds. The bonds pay interest semiannually. 

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

Present Value of $1
Periods	1%	2%	3%	4%	5%	6%	7%	8%	9%	10%	12%	14%	15%	16%	18%	20%
Period 1	0.990	0.980	0.971	0.962	0.952	0.943	0.935	0.926	0.917	0.909	0.893	0.877	0.870	0.862	0.847	0.833
Period 2	0.980	0.961	0.943	0.925	0.907	0.890	0.873	0.857	0.842	0.826	0.797	0.769	0.756	0.743	0.718	0.694
Period 3	0.971	0.942	0.915	0.889	0.864	0.840	0.816	0.794	0.772	0.751	0.712	0.675	0.658	0.641	0.609	0.579
Period 4	0.961	0.924	0.888	0.855	0.823	0.792	0.763	0.735	0.708	0.683	0.636	0.592	0.572	0.552	0.516	0.482
Period 5	0.951	0.906	0.863	0.822	0.784	0.747	0.713	0.681	0.650	0.621	0.567	0.519	0.497	0.476	0.437	0.402
Period 6	0.942	0.888	0.837	0.790	0.746	0.705	0.666	0.630	0.596	0.564	0.507	0.456	0.432	0.410	0.370	0.335
Period 7	0.933	0.871	0.813	0.760	0.711	0.665	0.623	0.583	0.547	0.513	0.452	0.400	0.376	0.354	0.314	0.279
Period 8	0.923	0.853	0.789	0.731	0.677	0.627	0.582	0.540	0.502	0.467	0.404	0.351	0.327	0.305	0.266	0.233
Period 9	0.914	0.837	0.766	0.703	0.645	0.592	0.544	0.500	0.460	0.424	0.361	0.308	0.284	0.263	0.225	0.194
Period 10	0.905	0.820	0.744	0.676	0.614	0.558	0.508	0.463	0.422	0.386	0.322	0.270	0.247	0.227	0.191	0.162
Period 11	0.896	0.804	0.722	0.650	0.585	0.527	0.475	0.429	0.388	0.350	0.287	0.237	0.215	0.195	0.162	0.135
Period 12	0.887	0.788	0.701	0.625	0.557	0.497	0.444	0.397	0.356	0.319	0.257	0.208	0.187	0.168	0.137	0.112
Period 13	0.879	0.773	0.681	0.601	0.530	0.469	0.415	0.368	0.326	0.290	0.229	0.182	0.163	0.145	0.116	0.093
Period 14	0.870	0.758	0.661	0.577	0.505	0.442	0.388	0.340	0.299	0.263	0.205	0.160	0.141	0.125	0.099	0.078
Period 15	0.861	0.743	0.642	0.555	0.481	0.417	0.362	0.315	0.275	0.239	0.183	0.140	0.123	0.108	0.084	0.065
Period 16	0.853	0.728	0.623	0.534	0.458	0.394	0.339	0.292	0.252	0.218	0.163	0.123	0.107	0.093	0.071	0.054
Period 17	0.844	0.714	0.605	0.513	0.436	0.371	0.317	0.270	0.231	0.198	0.146	0.108	0.093	0.080	0.060	0.045
Period 18	0.836	0.700	0.587	0.494	0.416	0.350	0.296	0.250	0.212	0.180	0.130	0.095	0.081	0.069	0.051	0.038
Period 19	0.828	0.686	0.570	0.475	0.396	0.331	0.277	0.232	0.194	0.164	0.116	0.083	0.070	0.060	0.043	0.031
Period 20	0.820	0.673	0.554	0.456	0.377	0.312	0.258	0.215	0.178	0.149	0.104	0.073	0.061	0.051	0.037	0.026
Period 21	0.811	0.660	0.538	0.439	0.359	0.294	0.242	0.199	0.164	0.135	0.093	0.064	0.053	0.044	0.031	0.022
Period 22	0.803	0.647	0.522	0.422	0.342	0.278	0.226	0.184	0.150	0.123	0.083	0.056	0.046	0.038	0.026	0.018
Period 23	0.795	0.634	0.507	0.406	0.326	0.262	0.211	0.170	0.138	0.112	0.074	0.049	0.040	0.033	0.022	0.015
Period 24	0.788	0.622	0.492	0.390	0.310	0.247	0.197	0.158	0.126	0.102	0.066	0.043	0.035	0.028	0.019	0.013
Period 25	0.780	0.610	0.478	0.375	0.295	0.233	0.184	0.146	0.116	0.092	0.059	0.038	0.030	0.024	0.016	0.010
Period 26	0.772	0.598	0.464	0.361	0.281	0.220	0.172	0.135	0.106	0.084	0.053	0.033	0.026	0.021	0.014	0.009
Period 27	0.764	0.586	0.450	0.347	0.268	0.207	0.161	0.125	0.098	0.076	0.047	0.029	0.023	0.018	0.011	0.007
Period 28	0.757	0.574	0.437	0.333	0.255	0.196	0.150	0.116	0.090	0.069	0.042	0.026	0.020	0.016	0.010	0.006
Period 29	0.749	0.563	0.424	0.321	0.243	0.185	0.141	0.107	0.082	0.063	0.037	0.022	0.017	0.014	0.008	0.005
Period 30	0.742	0.552	0.412	0.308	0.231	0.174	0.131	0.099	0.075	0.057	0.033	0.020	0.015	0.012	0.007	0.004
Period 40	0.672	0.453	0.307	0.208	0.142	0.097	0.067	0.046	0.032	0.022	0.011	0.005	0.004	0.003	0.001	0.001
Period 50	0.608	0.372	0.228	0.141	0.087	0.054	0.034	0.021	0.013	0.009	0.003	0.001	0.001	0.001

Present Value of Ordinary Annuity of $1
Periods	1%	2%	3%	4%	5%	6%	7%	8%	9%	10%	12%	14%	15%	16%	18%	20%
Period 1	0.990	0.980	0.971	0.962	0.952	0.943	0.935	0.926	0.917	0.909	0.893	0.877	0.870	0.862	0.847	0.833
Period 2	1.970	1.942	1.913	1.886	1.859	1.833	1.808	1.783	1.759	1.736	1.690	1.647	1.626	1.605	1.566	1.528
Period 3	2.941	2.884	2.829	2.775	2.723	2.673	2.624	2.577	2.531	2.487	2.402	2.322	2.283	2.246	2.174	2.106
Period 4	3.902	3.808	3.717	3.630	3.546	3.465	3.387	3.312	3.240	3.170	3.037	2.914	2.855	2.798	2.690	2.589
Period 5	4.853	4.713	4.580	4.452	4.329	4.212	4.100	3.993	3.890	3.791	3.605	3.433	3.352	3.274	3.127	2.991
Period 6	5.795	5.601	5.417	5.242	5.076	4.917	4.767	4.623	4.486	4.355	4.111	3.889	3.784	3.685	3.498	3.326
Period 7	6.728	6.472	6.230	6.002	5.786	5.582	5.389	5.206	5.033	4.868	4.564	4.288	4.160	4.039	3.812	3.605
Period 8	7.652	7.325	7.020	6.733	6.463	6.210	5.971	5.747	5.535	5.335	4.968	4.639	4.487	4.344	4.078	3.837
Period 9	8.566	8.162	7.786	7.435	7.108	6.802	6.515	6.247	5.995	5.759	5.328	4.946	4.772	4.607	4.303	4.031
Period 10	9.471	8.983	8.530	8.111	7.722	7.360	7.024	6.710	6.418	6.145	5.650	5.216	5.019	4.833	4.494	4.192
Period 11	10.368	9.787	9.253	8.760	8.306	7.887	7.499	7.139	6.805	6.495	5.938	5.453	5.234	5.029	4.656	4.327
Period 12	11.255	10.575	9.954	9.385	8.863	8.384	7.943	7.536	7.161	6.814	6.194	5.660	5.421	5.197	4.793	4.439
Period 13	12.134	11.348	10.635	9.986	9.394	8.853	8.358	7.904	7.487	7.103	6.424	5.842	5.583	5.342	4.910	4.533
Period 14	13.004	12.106	11.296	10.563	9.899	9.295	8.745	8.244	7.786	7.367	6.628	6.002	5.724	5.468	5.008	4.611
Period 15	13.865	12.849	11.938	11.118	10.380	9.712	9.108	8.559	8.061	7.606	6.811	6.142	5.847	5.575	5.092	4.675
Period 16	14.718	13.578	12.561	11.652	10.838	10.106	9.447	8.851	8.313	7.824	6.974	6.265	5.954	5.669	5.162	4.730
Period 17	15.562	14.292	13.166	12.166	11.274	10.477	9.763	9.122	8.544	8.022	7.120	6.373	6.047	5.749	5.222	4.775
Period 18	16.398	14.992	13.754	12.659	11.690	10.828	10.059	9.372	8.756	8.201	7.250	6.467	6.128	5.818	5.273	4.812
Period 19	17.226	15.678	14.324	13.134	12.085	11.158	10.336	9.604	8.950	8.365	7.366	6.550	6.198	5.877	5.316	4.844
Period 20	18.046	16.351	14.877	13.590	12.462	11.470	10.594	9.818	9.129	8.514	7.469	6.623	6.259	5.929	5.353	4.870
Period 21	18.857	17.011	15.415	14.029	12.821	11.764	10.836	10.017	9.292	8.649	7.562	6.687	6.312	5.973	5.384	4.891
Period 22	19.660	17.658	15.937	14.451	13.163	12.042	11.061	10.201	9.442	8.772	7.645	6.743	6.359	6.011	5.410	4.909
Period 23	20.456	18.292	16.444	14.857	13.489	12.303	11.272	10.371	9.580	8.883	7.718	6.792	6.399	6.044	5.432	4.925
Period 24	21.243	18.914	16.936	15.247	13.799	12.550	11.469	10.529	9.707	8.985	7.784	6.835	6.434	6.073	5.451	4.937
Period 25	22.023	19.523	17.413	15.622	14.094	12.783	11.654	10.675	9.823	9.077	7.843	6.873	6.464	6.097	5.467	4.948
Period 26	22.795	20.121	17.877	15.983	14.375	13.003	11.826	10.810	9.929	9.161	7.896	6.906	6.491	6.118	5.480	4.956
Period 27	23.560	20.707	18.327	16.330	14.643	13.211	11.987	10.935	10.027	9.237	7.943	6.935	6.514	6.136	5.492	4.964
Period 28	24.316	21.281	18.764	16.663	14.898	13.406	12.137	11.051	10.116	9.307	7.984	6.961	6.534	6.152	5.502	4.970
Period 29	25.066	21.844	19.188	16.984	15.141	13.591	12.278	11.158	10.198	9.370	8.022	6.983	6.551	6.166	5.510	4.975
Period 30	25.808	22.396	19.600	17.292	15.372	13.765	12.409	11.258	10.274	9.427	8.055	7.003	6.566	6.177	5.517	4.979
Period 40	32.835	27.355	23.115	19.793	17.159	15.046	13.332	11.925	10.757	9.779	8.244	7.105	6.642	6.233	5.548	4.997
Period 50	39.196	31.424	25.730	21.482	18.256	15.762	13.801	12.233	10.962	9.915	8.304	7.133	6.661	6.246	5.554	4.999

Requirement 1. How much cash did the company receive upon issuance of the bonds payable? (Round to the nearest dollar.)

Upon issuance of the bonds payable, the company received

Requirement 2. Prepare an amortization table for the bond us

ing the effective-interest method, through the first two interest payments. (Round to the nearest dollar.)

		Interest		Carrying
	Cash Paid	Expense	Amortized	Amount
01/01/2024
06/30/2024
12/31/2024

Part 3Requirement 3. Journalize the issuance of the bonds on January 1,

2024,

and the first and second payments of the semiannual interest amount and amortization of the bonds on June 30,

2024

and December 31,

2024.

Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.)Journalize the issuance of the bonds.

Date	Accounts	Debit	Credit
2024
Jan. 1

Part 4Journalize the payment of the first semiannual interest amount and amortization of the bond on June 30,

2024.

Date	Accounts	Debit	Credit
2024
Jun. 30

Part 5Journalize the payment of the second semiannual interest amount and amortization of the bond on December 31,

2024.

Date	Accounts	Debit	Credit
2024
Dec. 31