Park corporation is planning to issue bonds with a face value of $2,000,000 and a coupon rate of 10 percent. the bonds mature in 10 years and pay interest semiannually every june 30 and december 31. all of the bonds were sold on january 1 of this year. park uses the effective-interest amortization method and also uses a premium account. assume an annual market rate of interest of 8.5 percent. (fv of $1, pv of $1, fva of $1, and pva of $1) (use the appropriate factor(s) from the tables provided.) required: 1. prepare the journal entry to record the issuance of the bonds

Cash                      2,214,007 debit

        bonds payable              2,000,000 credit

        premium on B.P                 214,007 credit

Explanation:

To know the proceeds for the bonds we will calculate the present value of the coupon payment and the present vlaue of the maturity at market rate:

The coupon payment will be an ordnary annuity

Coupon payment: 2,000,000 x 0.05 =  100,000

time: 10 years x 2 payment per year = 20

rate8.5% annual rate: 0.085/2 = 0.0425 semiannual rate

PV$1,329,436.5808

Whilethe maturity the present value of a lump sum

Maturity  2,000,000.00

time   10 years to maturity

 rate  0.085

PV   884,570.83

PV coupon payment$1,329,436.5808

PV maturity                   $884,570.8301

Total$2,214,007.4109

facevalue  2,000,000

premium        214,007

the specific actions take by the fed. what the fed was attempting to do by taking these actions. the result of the actions taken by the fed

answer; because many corporate watch groups will discover and publicize unethical behavior by suppliers, link it to the american company, and harm its reputation;