Consider each of the following three separate situations.
1. The market rate at the date of issuance is 10%.
(a)Complete the below table to determine the bonds' issue price on January 1, 2013.par maturity value, total value, amount, present value interest(annuity) total value, amount, present value price of bonds.
| b) |
Prepare the journal entry to record their issuance.
- Record the issue of bonds with a par value of $32,000 cash on January 1, 2013. Assume that the market rate of interest at the date of issue is 10%.
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| The market rate at the date of issuance is 12%. |
| (a) |
Complete the below table to determine the bonds' issue price on January 1, 2013.
n=
i=
par maturity value, total value, amount, present value
interest (annuity), total value, amount, present value
Price of bonds
| b) |
Prepare the journal entry to record their issuance.
- Record the issue of bonds with a par value of $32,000 cash on January 1, 2013. Assume that the market rate of interest at the date of issue is 12%.
-
| . |
The market rate at the date of issuance is 14%. |
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|
| (a) |
Complete the below table to determine the bonds' issue price on January 1, 2013.
n=
i=
par maturity value, total value, amount, present value,
interest, total value, amount, present value
price of bonds.
| (b) |
Prepare the journal entry to record their issuance
- Record the issue of bonds with a par value of $32,000 cash on January 1, 2013. Assume that the market rate of interest at the date of issue is 14%.
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