Compute the issue or sale price of the bonds

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Reference no: EM132493820

Nordic Company issued bonds with the following provisions:

Maturity value: $60,000,000.

Interest: 7.9 percent per annum payable semi-annually each June 30 and December 31.

Terms: Bonds dated January 1, 2017, due five years from that date.

The company's fiscal year ends on December 31. The bonds were sold on January 1, 2017, at a yield of 8\ percent.

Required:

Question 1. Compute the issue (sale) price of the bonds. (Round time value factor to 4 decimal places. Round the final answer to the nearest whole dollar.)

Issue (sale) price

$ 60, 105,600

Question 2. Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round the final answers to the nearest whole dollar.)

Reference no: EM132493820

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