Garcia Company issues $8\mathrm{.}0\%,15-$year bonds with a par value of $$380,000$ and semiannual interest payments. On the

issue date, the annual market rate for these bonds is $6\mathrm{.}0\%,$ which implies a selling price of $1163/4.$

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

Journal entry worksheet

$1$

Record the issue of bonds with a par value of $$380,000$ at a selling price of

$1163/4.$

Note: Enter debits before credits.