A. Determine the issue price of the debt.

B. Prepare the amortization table for the bond issue through January 1, 2021, assuming that Jones Road uses the effective interest rate method of amortization.

C. Prepare the journal entries to record the bond issue, the first interest entry, and payment of the bonds at maturity. Assume the company uses a premium or discount account if needed.

On January 1, 2018, the Jones Road Corporation issued $800,000 par value, 3%, 5-year bonds. 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, 2018. The market rate of interest on the date of the bond issue was 4%. The company's fiscal year ends on December 31.

A. Determine the issue price of the debt. (Use the present value and future value tables, 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 debt is $?

B. Prepare the amortization table for the bond issue through January 1, 2021, assuming that Jones Road uses the effective interest rate method of amortization. (Round each calculation to the nearest whole number and then use the rounded value for each subsequent calculation in the table.)

Date Cash Interest Effective Interest Discount/Premium Amortization Carrying Value

Jan 1, 18 ?

Jul 1, 18 ? ? ? ?

Jan 1, 19 ? ? ? ?

Jul 1, 19 ? ? ? ?

Jan 1, 20 ? ? ? ?

Jul 1, 20 ? ? ? ?

Jan 1, 21 ? ? ? ?

C. Prepare the journal entries to record the bond issue, the first interest entry, and payment of the bonds maturity. Assume the company uses a premium or discount account if needed. (Round your answers to the nearest whole dollar. Record debits first, then credits. Exclude explanations from any journal entries.)

Begin by recording the issuance of the bonds payable.

Account January 1, 2018

? ? | ?

Record the first semiannual interest payment.

Account July 1, 2018

? ? | ?

Prepare the journal entry to record payment of the bonds at maturity.

Account January 1, 2023

? ? | ?