E$10-7($Algo$)$ Preparing Journal Entries to Record Issuance of Bonds and Payment of Interest $[$LO $10-3]$

On January $1,$ Applied Technologies Corporation $($ATC$)$ issued $$640,000$ in bonds that mature in $10$ years. The bonds have a stated interest rate of $11$ percent. When the bonds were issued, the market interest rate was $11$ percent. The bonds pay interest once per year on December $31.$

Required:

Determine the price at which the bonds were issued and the amount that ATC received at issuance.

& $3.$ Prepare the required journal entries to record the bond issuance and the first interest payment on December $31$ assuming no interest has been accrued earlier in the year.

Answer is complete but not entirely correct.

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

Req $1$

Req $2$ and $3$

Prepare the required journal entries to record the bond issuance and the first interest payment on December $31$ assuming no interest has been accrued earlier in the year. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry

Required" in the first account field.$)$

$\backslash$table$[[$No$,$Date,General Journal,Debit,Credit,$],[1,$January $01,$Cash,$640,000,,],[,,$Bonds Payable,,,$640,000],[,,,,,],[2,$December $31,$Interest Expense,,$70,400,]]$