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Hartford Research issues bonds dated January 1, 2015, that payinterest semiannually on June 30 and December 31. The bonds have a$31,000 par value and an annual contract rate of 12%, and theymature in 10 years. (Table B.1, Table B.2, Table B.3, and TableB.4) (Use appropriate factor(s) from the tables provided.Round all table values to 4 decimal places, and use the roundedtable values in calculations.)

Required:
Consider each of the followingthree separate situations.

1. The market rate at the date ofissuance is 10%.
(a)

Complete the below table to determine the bonds' issue price onJanuary 1, 2015.

Tablevalues are based on:
n =
i =
CashFlow Table Value Amount Present Value
Par(maturity) value
Interest(annuity)
Price of bonds
(b)

Prepare the journal entry to record their issuance.

Journal Entry Worksheet

Record the issue of bonds with a par value of $31,000 cash onJanuary 1, 2015. Assume that the market rate of interest at thedate of issue is 10%.

Date General Journal Debit Credit
Jan 01, 2015 Cash
Premium onbonds payable
Bondspayable

*Enter debits before credits

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Hubert Koch
Hubert KochLv2
28 Sep 2019

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