Enviro Company issues $8\%,10-$year bonds with a par value of $$220,000$ and semiannual interest payments. On the issue date, the

annual market rate for these bonds is $10\%,$ which implies a selling price of $\frac{871}{2}.$

Prepare the journal entry for the issuance of the bonds for cash on January $1.$

Journal entry worksheet

$1$

Record the issue of bonds with a par value of $$220,000.$

Note: Enter debits before credits.