1.Find the issue price of the bond is:

2.Prepare the journal entry to record the bond.

On January 1, Modine Company issued $400,000 par value, 4%, 5-year bonds (i.e., there were 400 of $1,000 par value bonds in the issue). Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1. Modine paid $1,000 in underwriting fees. Determine the issue price of the bonds with a 8% market rate of interest and prepare the journal entry to record the bond issue. (Click the icon to view the Future Value of $1 table.) (Click the icon to view the Future Value of an Ordinary Annuity table.) (Click the icon to view the Future Value of an Annuity Due table.) (Click the icon to view the Present Value of $1 table.) (Click the icon to view the Present Value of an ordinary Annuity table.) (Click the icon to view the Present Value of an Annuity Due table.) C. Determine the issue price of the bonds. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round your final answers to the nearest whole dollar.) The issue price of the bonds is $