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…

Answered: 1. Compute the price of the bonds as of…

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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.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 15MCQ

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Question

Exercise 10-18A (Algo) Computing bond interest and price; recording bond issuance LO C2
Citywide Company issues bonds with a par value of $65,000. The bonds mature in nine years and pay 10% annual interest in
semiannual 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 2
Compute 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 Flow
Par (maturity) value
Interest (annuity)
Price of bonds
n =
i =
Table Value
Amount
Required 1
Present Value
Required 2
>

Citywide Company issues bonds with a par value of $65,000. The bonds mature in nine years and pay 10% annual interest in
semiannual 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 2
Prepare the journal entry to record the bonds' issuance.
Note: Round intermediate calculations to the nearest dollar amount.
View transaction list
Journal entry worksheet
1
Record the issuance of the bonds for cash.
Note: Enter debits before credits.
Transaction
1
General Journal
Debit
Credit
>

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