there is no question 4.

Q3. On December 31, 2010, Delta Company issued 100 3-yr bonds with a 8% coupon rate. If the Market interest is 6%, journalize the discounted bond on December 31 (a) What is the jounal entry for December 31, 2010? (Use the table in the next worksheet to calculate the values) (c) What difference do you see between Question 3 and Question 4 in terms of accounts for December 31, 2010? TABLE 9A-2 Present Value of $1 PV = 1 (1 + i)" Periods 3% 4% 5% 5 6% 7% 8% 10% 12% 14% 16% 18% 20% 22% 24% 25% 1 2 3 4 4 5 6 7 .9524 .9070 .8638 .8227 .7835 .7462 .7107 .6768 .9346 .8734 .8163 .7629 .7130 8 9 9 10 11 12 13 14 15 16 .9709 .9426 .9151 .8885 .8626 .8375 .8131 .7894 .7664 .7441 .7224 .7014 .6810 .6611 .6419 .6232 .6050 .5874 .5703 .5537 .53 75 .5219 .5067 4919 4776 .4637 4502 4371 .4243 .4120 .3066 .9615 .9246 .8890 .8548 .8219 .7903 .7599 .7307 .7026 .6756 .6496 .6246 .6006 .5775 .5553 .5339 .5134 .4936 .4746 .4564 .4388 .4220 .4057 .3901 .3751 .3607 .3468 .3335 .3207 .3083 .2083 .9434 .8900 .8396 .7921 .7473 .7050 .6651 .6274 .5919 .5584 .5268 .4970 .4688 .4423 .4173 .3936 .3714 .3503 .3305 .31 18 .2942 .2775 .2618 .24 70 .2330 .2198 .2074 .1956 .1846 .1741 .0972 .6446 .6139 .5847 .5568 .5303 .5051 .4810 .4581 .4363 .4155 .3957 .3769 .3589 .3418 .3256 .3101 2953 .2812 .2678 .2551 .2429 .2314 . 1420 .9259 .8573 .7938 .7350 .6806 .6302 .5835 .5403 .5002 .4632 .4289 .3971 .3677 .3405 .3152 .2919 .2703 .2502 .2317 .2145 .1987 .1839 .1703 .1577 .1460 .1352 .1252 .1159 .1073 .0994 .0460 .6663 .6227 .5820 .5439 .5083 .4751 .4440 .4150 .3878 .3624 .3387 .3166 .2959 .2765 .2584 .2415 .2257 .2109 .1971 .1842 .1722 .1609 . 1504 .1406 .1314 .0668 .9091 .8264 .7513 .6830 .6209 .5645 .5132 4665 .4241 .3855 .3505 3186 .2897 .2633 .2394 .2176 .1978 .1799 .1635 .1486 .1351 .1228 .1117 .1015 .0923 .0839 .0763 .0693 .06 30 .0573 .0221 .8929 .7972 .7118 .6355 .5674 .5066 .4523 .4039 .3606 .3220 .2875 .2567 .2292 .2046 .1827 .1631 .1456 . 1300 . 1161 . 1037 .0926 .0826 .0738 .0659 .0588 .0525 .0469 .0419 .0374 .0334 .0107 .8772 .7695 .6750 .5921 .5194 .4556 .3996 .3506 .3075 .2697 .2366 .2076 .1821 . 1597 . 1401 .1229 . 1078 .0946 .0829 .0728 .0638 .0560 .0491 .0431 .0378 .0331 .0291 .0255 .0224 .0196 .0053 .8621 .7432 .6407 .5523 4761 .4104 .3538 .3050 .2630 .2267 .1954 .1685 .1452 .1252 .1079 .0930 .0802 .0691 .0596 .0514 .0443 .0382 .0329 .0284 .0245 .0211 .0182 .0157 .0135 .01 16 .0026 .8475 .7182 .6086 .5158 .4371 .3704 .3139 .2660 .2255 .1911 . 1619 .1372 .1163 .0985 .0835 .0708 .0600 .0508 .0431 .0365 .0309 .0262 .0222 .0188 .0160 .0135 .0115 .0097 .0082 .0070 .0013 .8333 .6944 .5787 .4823 .4019 .3349 .2791 .2326 .1938 . 1615 .1346 .1122 .0935 .0779 .0649 .0541 .0451 .0376 .0313 .0261 .0217 .0181 .0151 .0126 .0105 .0087 .0073 .0061 .0051 .0042 .0007 .8197 .6719 .5507 .4514 .3700 .3033 .2486 .2038 .1670 .1369 .1122 .09 20 .0754 .06 18 .0507 .04 15 .0340 .0279 .0229 .0187 .0154 .0126 .0103 .0085 .0069 .0057 .0047 .0038 .0031 .0026 .0004 .8065 .6504 .5245 .4230 .3411 .2751 .2218 .1789 .1443 . 1164 .0938 .0757 .0610 .0492 .0397 .0320 .0258 .0208 .0168 .0135 .0109 .0088 .0071 .0057 .0046 .0037 .0030 .0024 .0020 .0016 .0002 17 18 .8000 .6400 .5120 .4096 .3277 .2621 .2097 .1678 .1342 .1074 .0859 .0687 .0550 .0440 .0352 .0281 .0225 .0180 .0144 .0115 .0092 .0074 .0059 .0047 .0038 .0030 .0024 .0019 .0015 .0012 .0001 19 20 21 22 23 24 25 26 27 28 29 30 40 Use this for the Priciple!! TABLE 9A-3 Present Value of Ordinary Annuity of $1 PV = {{1 - +1) = 1 - (1 + 7)" Periods 3% 4% 5% 6% 7% 8% 10% 12% 14% 16% 18% 20% 22% 24% 25% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 .9709 .9615 .9524 .9434 .9346 .9259 1.9135 1.8861 1.8594 1.8334 1.8080 1.7833 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 9.2526 8.7605 8.3064 7.8869 7.4987 7.1390 9.9540 9.3851 8.8633 8.3838 7.9427 7.5361 10.6350 9.9856 9.3936 8.8527 8.3577 7.9038 11.2961 10.5631 9.8986 9.2950 8.7455 8.2442 11.9379 11.1184 10.3797 9.7122 9.1079 8.5595 12.5611 11.6523 10.8378 10.1059 9.4466 8.8514 13.1661 12.1657 11.2741 10.4773 9.7632 9.1216 13.7535 12.6593 11.6896 10.8276 10.0591 9.3719 14.3238 13.1339 12.0853 11.1581 10.3356 9.6036 14.8775 13.5903 12.4622 11.4699 10.5940 9.8181 15.4150 14.0292 12.8212 11.7641 10.8355 10.0168 15.9369 14.4511 13.1630 12.0416 11.0612 10.2007 16.4436 14.8568 13.4886 12.3034 11.2722 10.3711 16.9355 15.2470 13.7986 12.5504 11.4693 10.5288 17.4131 15.6221 14.0939 12.7834 11.6526 10.6748 17.8768 15.9828 14.3752 13.0032 11.8258 10.8100 18.3270 16.3296 14.6430 13.2105 11.9867 10.9352 18.7641 16.6631 14.8981 13.4062 12.1371 11.0511 19.1885 16.9837 15.1411 13.5907 12.2777 11.1584 19.6004 17.2920 15.3725 13.7648 12.4090 11.2578 23.1148 19.7928 17.1591 15.0463 13.3317 11.9246 .9091 .8929 .8772 .8621 .8475 .8333 .8197 1.7355 1.6901 1.6467 1.6052 1.5656 1.5278 1.4915 2.4869 2.4018 2.3216 2.2459 2. 1743 2.1065 2.0422 3.1699 3.0373 2.9137 2.7982 2.6901 2.5887 2.4936 3.7908 3.6048 3.4331 3.2743 3.1272 2.9906 2.8636 4.3553 4.1114 3.8887 3.6847 3.4976 3.3255 3.1669 4.8684 4.5638 4.2883 4.0386 3.8115 3.6046 3.4155 5.3349 4.9676 4.6389 4.3436 4.0776 3.8372 3.6193 5.7590 5.3282 4.9464 4.6065 4.3030 4.0310 3.7863 6.1446 5.6502 5.2161 4.8332 4.4941 4.1925 3.9232 6.4951 5.9377 5.4527 5.0286 4.6560 4.3271 4.0354 6.8137 6.1944 5.6603 5.1971 4.7932 4.4392 4.1274 7.1034 6.4235 5.8424 5.3423 4.9095 4.5327 4.2028 7.36 77 6.6282 6.0021 5.4675 5.0081 4.6106 4.2646 7.6061 6.8109 6.1422 5.5755 5.0916 4.6755 4.3152 7.8237 6.9740 6.2651 5.6685 5.1624 4.7296 4.3567 8.0216 7.1.196 6.3729 5.7487 5.2223 4.7746 4.3908 8.2014 7.2497 6.4674 5.8178 5.2732 4.8122 4.4187 8.36497.3658 6.5504 5.8775 5.3162 4.8435 4.4415 8.5136 7.4694 6.6231 5.9288 5.3527 4.8696 4.4603 8.6487 7.5620 6.6870 5.9731 5.3837 4.8913 4.4756 8.7715 7.6446 6.7429 6.01.13 5.4099 4.9094 4.4882 8.8832 7.7184 6.7921 6.0442 5.4321 4.9245 4.4985 8.9847 7.78436.8351 6.0726 5.4509 4.9371 4.5070 9.07 70 7.8431 6.8729 6.0971 5.4669 4.9476 4.5139 9.1609 7.8957 6.9061 6.1182 5.4804 4.9563 4.5196 9.2372 7.9426 6.9352 6.1364 5.4919 4.9636 4.5243 9.3066 7.9844 6.9607 6.1520 5.5016 4.9697 4.5281 9.3696 8.0218 6.9830 6.1656 5.5098 4.9747 4.5312 9.4269 8.0552 7.0027 6.1772 5.5168 4.9789 4.5338 9.7791 8.2438 7.1050 6.2335 5.5482 4.9966 4.5439 .8065 .8000 1.4568 1.4400 1.9813 1.9520 2.4043 2.3616 2.7454 2.6893 3.0205 2.9514 3.2423 3.1611 3.4212 3.3289 3.5655 3.4631 3.6819 3.5705 3.7757 3.6564 3.8514 3.7251 3.9124 3.7801 3.9616 3.8241 4.0013 3.8593 4.0333 3.8874 4.0591 3.9099 4.0799 3.9279 4.0967 3.9424 4.1 103 3.9539 4.1212 3.9631 4.1300 3.9705 4.1371 3.9764 4.1428 3.9811 4.1474 3.9849 4.1511 3.9879 4.1542 3.9903 4.1566 3.9923 4.1585 3.9938 4.1601 3.9950 4.1659 3.9995 17 18 19 20 21 22 23 24 25 26 27 28 29 30 40 Use this for the coupons