Exercise 10-18A (Algo) Computing bond interest and price; recording bond issuance LO C2Citywide Company issues bonds with a par value of $65,000. The bonds mature in nine years and pay 10% annual interest insemiannual payments. The annual market rate for the bonds is 8%. (Table B.1, Table B.2, Table B.3, and Table B.4)Note: Use appropriate factor(s) from the tables provided.1. Compute the price of the bonds as of their issue date.2. Prepare the journal entry to record the bonds' issuance.Complete this question by entering your answers in the tabs below.Required 1 Required 2Compute the price of the bonds as of their issue date.Note: Round intermediate calculations to the nearest dollar amount.Table Values are Based on:Cash FlowPar (maturity) valueInterest (annuity)Price of bondsn =i =Table ValueAmountRequired 1Present ValueRequired 2> Citywide Company issues bonds with a par value of $65,000. The bonds mature in nine years and pay 10% annual interest insemiannual payments. The annual market rate for the bonds is 8%. (Table B.1, Table B.2, Table B.3, and Table B.4)Note: Use appropriate factor(s) from the tables provided.1. Compute the price of the bonds as of their issue date.2. Prepare the journal entry to record the bonds' issuance.Complete this question by entering your answers in the tabs below.Required 1 Required 2Prepare the journal entry to record the bonds' issuance.Note: Round intermediate calculations to the nearest dollar amount.View transaction listJournal entry worksheet1Record the issuance of the bonds for cash.Note: Enter debits before credits.Transaction1General JournalDebitCredit>

A Bond is a debt security which is issued by the borrower to the lender. The lender is known as…

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Accounting

1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the bonds' issuance.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter11: Bond Pricing And Amortization (bonds)

Section: Chapter Questions

Problem 1R: The University Club recently issued 1,500,000 of 10-year, 9% bonds at an effective interest rate of...

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