E10-9 Computing the Issue Price of a Bond with Analysis of Net Earnings and Cash Flow Effects LO10-3, 10-8

Imai Company issued a $1.285 million bond that matures in five years. The bond has a 7 percent coupon rate. When the bond was issued, the market rate was 4 percent. The bond pays interest twice per year, on June 30 and December 31. Use Table 9C.1, Table 9C.2.

Required:

1. Record the issuance of the bond on June 30. (Round time value factor to 4 decimal places. Enter your answers in dollars not in millions. Round intermediate and final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

No	Date	General Journal	Debit	Credit
1	June 30	Cash	1,323,550
		Bond Payable		1,285,000
		Bond Premium		38,550

My amounts for "Cash" and "Bond Premium" are incorrect. Please explain what the correct answer is. Thank you!