Grand Company authorized $150,000 of 5-year bonds dated January 1, 2009. The stated rate of interest was 14%, payable annually each December 31. The bonds were issued on January 1, 2009, when the market interest rate was 12%. Round to the nearest dollar.

1) Was the bond issued at par, at a premium, or at a discount?

2) Determine issue price of Bonds

3) Prepare the entry required on January 1, 2009.