Carr Corporation issued $$78,000$ of $6$ percent, $11-$year bonds on January $1,$ Year $1,$ for a price that reflected a $7$ percent market rate of interest. Interest is payable annually on December $31.$

To determine the appropriate discount factor$($s$)$ using tables, click here to view Tables $1_{,}{1}_{,}{I}_{?},$ or $()$ in the appendix. Alternatively, if you calculate the discount factor$($s$)$ using a formula, round to six $(6)$ decimal places before using the factor in the problem.

Required

a$.$ What was the selling price of the bonds?

b$.$ Prepare the journal entry to record issuing the bonds.

c$.$ Prepare the journal entry for the first interest payment on December $31,$ Year $1,$ using the effective interest rate method.

Complete this question by entering your answers in the tabs below.

Required B

What was the selling price of the bonds? $($Rund your intermediate dollar values and final answer to the nearest dollar amount.$)$

Selling price