151. Using the following table, what is the present value of $5,000 to be received 5 years, if the market rate is 10% compounded annually?
1.95238.94340.93458.90909
2.90703.89000.87344.82645
3.86384.83692.81630.75132
4.82270.79209.76290.68301
5.78353.74726.71299.62092
6.74622.70496.66634.56447
7.71068.66506.62275.51316
8.67684.62741.58201.46651
9.64461.59190.54393.42410
10.61391.55840.50835.38554
152. Use the following tables to calculate the present value of a $20,000 7%, 5 year bond that pays $1,400 ($20,000 ´ 7%) interest annually, if the market rate of interest is 7%
Present Value of $1 at Compound Interest
1.95238.94340.93458.90909
2.90703.89000.87344.82645
3.86384.83692.81630.75132
4.82270.79209.76290.68301
5.78353.74726.71299.62092
6.74622.70496.66634.56447
7.71068.66506.62275.51316
8.67684.62741.58201.46651
9.64461.59190.54393.42410
10.61391.55840.50835.38554
1.95238.94340.93458.90909
21.859411.833391.808021.73554
32.723252.673012.624322.48685
43.545953.465113.387213.16987
54.329484.212364.100203.79079
65.075694.917324.766544.35526
75.786375.582385.389294.86842
86.463216.209795.971305.33493
97.107826.801696.515235.75902
107.721747.360097.023586.14457
153. On the first day of the fiscal year, a company issues a $1,000,000, 7%, 5 year bond that pays semi-annual interest of $35,000 ($1,000,000 ´ 7% ´ 1/2), receiving cash of $884,171. Journalize the entry to record the issuance of the bonds.
154. On the first day of the fiscal year, a company issues a $500,000, 8%, 10 year bond that pays semi-annual interest of $20,000 ($500,000 ´ 8% ´ 1/2), receiving cash of $437,740. Journalize the entry to record the issuance of the bonds.