Question

Please tell me what I am missing to complete this question. Thank you.

Exercise 14-3A Computing bond interest and price; recording bond issuance LO C2 Bringham Company issues bonds with a par value of $800,000 on their stated issue date. The bonds mature in 10 years and pay 6% annual interest in semiannual payments. On the issue date, the annual market rate for the bonds is 8%. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) 1. What is the amount of each semiannual interest payment for these bonds? 2. How many semiannual interest payments will be made on these bonds over their life? 3. Use the interest rates given to select whether the bonds are issued at par, at a discount, or at a premium. 4. Compute the price of the bonds as of their issue date. 5. Prepare the journal entry to record the bonds' issuance. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 Req 5 What is the amount of each semiannual interest payment for these bonds? How many semiannual interest payments will be made on these bonds over their life? Use the interest rates given to select whether the bonds are issued at par, at a discount, or at a premium. Par (maturity) value Semiannual Rate Semiannual cash interest payment $ 24,000 $ 800,000 3% = Number of payments 20 Whether the bonds are issued at par, at a discount, or at a premium? At a discount.

Answer 1

For part 1, multiplication sign is missing between Par(maturity value) and Semiannual rate
Par(maturity value)		Semiannual rate		Semiannual cash interest payment
800000	X	3%	=	24000