Homework Answers
Answer
- Requirement 2
|
Accounts title |
Debit |
Credit |
|
Cash |
$77,473 |
|
|
Premium on Bonds Payable |
$3,473 |
|
|
Bonds Payable |
$74,000 |
|
|
(to record issuance) |
- [1]
|
Table Values are Based on: |
|||
|
n = |
12 [6 years x 2 semi annual payments each year] |
||
|
i = |
4% [8% market rate x 6/12] |
||
|
Cash Flow |
Table Value |
Amount |
Present Value |
|
Present (maturity) value |
0.6246 |
$74,000 |
$46,220 |
|
Interest (annuity) |
9.3851 |
$3,330 |
$31,252 |
|
Total cash proceeds |
$77,473 |
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