1.Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder Co. issued a bond with a face amount of $25,000, term of 10 years with interest payable semiannually, a contract rate of 8% and at a current market rate of 9%. Determine the present value of the bonds payable. Round your final answer to the nearest dollar.

2. Based off your calculation above, record the resulting journal entry.