Exercise 10-17A (Algo) Computing bond interest and price; recording bond issuance LO C2 Brin Company issues bonds with a par value of $570,000. The bonds mature in 9 years and pay 8% annual interest in semiannual payments. The annual market rate for the bonds is 10%. (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.
Exercise 10-17A (Algo) Computing bond interest and price; recording bond issuance LO C2 Brin Company issues bonds with a par value of $570,000. The bonds mature in 9 years and pay 8% annual interest in semiannual payments. The annual market rate for the bonds is 10%. (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.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter10: Long-term Liabilities
Section: Chapter Questions
Problem 10.3E: Issue Price The following terms relate to independent bond issues: 500 bonds; $1,000 face value; 8%...
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![Exercise 10-17A (Algo) Computing bond interest and price; recording bond issuance LO C2
Brin Company issues bonds with a par value of $570,000. The bonds mature in 9 years and pay 8% annual interest in semiannual
payments. The annual market rate for the bonds is 10%. (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
Required 2
Compute the price of the bonds as of their issue date.
Note: Round all table values to 4 decimal places, and use the rounded table values in calculations. Round intermediate
calculations to the nearest dollar amount.
Table Values are Based on:
Cash Flow
Par (maturity) value
Interest (annuity)
Price of bonds
n =
18
i =
8.0%
Table Value
Amount
Present Value
0.4581
x
$570,000
$
261,117
10.8378
x
$ 22,800 =
247,102
$
508,219](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc6b776f4-6d42-404c-8a6f-b00f5d01617d%2F033489d7-ca49-4eee-8eb6-7b1547e01341%2Fya3dhs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 10-17A (Algo) Computing bond interest and price; recording bond issuance LO C2
Brin Company issues bonds with a par value of $570,000. The bonds mature in 9 years and pay 8% annual interest in semiannual
payments. The annual market rate for the bonds is 10%. (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
Required 2
Compute the price of the bonds as of their issue date.
Note: Round all table values to 4 decimal places, and use the rounded table values in calculations. Round intermediate
calculations to the nearest dollar amount.
Table Values are Based on:
Cash Flow
Par (maturity) value
Interest (annuity)
Price of bonds
n =
18
i =
8.0%
Table Value
Amount
Present Value
0.4581
x
$570,000
$
261,117
10.8378
x
$ 22,800 =
247,102
$
508,219
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