Exercise 10-17A (Algo) Computing bond interest and price; recording bond issuance LO C2Brin Company issues bonds with a par value of $570,000. The bonds mature in 9 years and pay 8% annual interest in semiannualpayments. 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.RequiredRequired 2Compute 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 intermediatecalculations to the nearest dollar amount.Table Values are Based on:Cash FlowPar (maturity) valueInterest (annuity)Price of bondsn =18i =8.0%Table ValueAmountPresent Value0.4581x$570,000$261,11710.8378x$ 22,800 =247,102$508,219

Given : Bond Value (Par) : $570,000Life = 9 years Market rate of interest = 10% p.a and 5 % semi…

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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