Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. bringham company issues bonds with a par value of

Bringham Company issues bonds with a par value of $610,000. The bonds mature in 9...

60.1K

Verified Solution

Question

Accounting

image

image

Bringham Company issues bonds with a par value of $610,000. The bonds mature in 9 years and pay 9% annual interest in semiannual payments. The annual market rate for the bonds is 12%. (Table B. Table B2. Table B 3, and Table B4) (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. (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 Amount Present Value 6.0% Table Value 10.8270 0.3503 Par (maturity) value Interest (annuity) Price of bonds $ 27,450 $ 610,000 297,201 213,683 510,884 Required 2 > Journal entry worksheet Record the issuance of the bonds for cash. Note: Enter debits before credits. Transaction General Journal Debit Credit S LLLL PER MONITORIMIT I Record entry Clear entry View general journal

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students