Northland Corporation had \(\$ 400,000,10\)-year bonds outstanding on December 31, 2011 (end of the fiscal year). Interest is payable each December 31. The bonds were issued (sold) on January 1, 2011. The 2011 annual financial statements showed the following:

\section*{Required (show computations):}
1. What was the issue price of the bonds? Prepare the journal entry to record the issuance of the bonds on January \(1,2011\).
2. What was the coupon rate on the bonds? Prepare the entry to record interest expense for 2011.

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Income statement Bond interest expense (straight-line amortization) Statement of financial position Bonds payable (net liability) $ 33,200 389,200