E$15\mathrm{.}10($LO$3)$ AP Korman Company issued $$800,000$ of $7\%,5-$year bonds on January $1,2024.$ The bonds pay interest annually.

Instructions

a$.$ Assuming the market interest rate on January $1,2024,$ was $8\%,$ calculate the bond's issue price.

b$.$ Prepare an effective$-$interest amortization table for this bond.

c$.$ Prepare the entry for the first interest payment. Ignore any year end adjusting entry.