Hartford Research issues bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. The bonds have a $29,000 par value and an annual contract rate of 8%, and they mature in 10 years.

A. The market rate at the date of issuance is 8%,

B. The market rate at the date of issuance is 10%. Prepare the journal entry for Jan 01, 2015

C. The market rate at the date of issuance is 12%. Prepare the journal entry for Jan 01, 2015

A) A. The market rate at the date of issuance is 6%,

Cash flow	Table value@3%	Amount $	Present value$
Par(maturity value)
Interest annuity
Price of bonds

Date	Accounts titles	Debit $	Credit $
1 January 2015	Cash Premium on bonds payable Bonds payable

B) The market rate at the date of issuance is 8%. Prepare the journal entry for Jan 01, 2015

Cash flow	Table value@4%	Amount $	Present value$
Par(maturity value)
Interest annuity
Price of bonds

Date	Accounts titles	Debit $	Credit $
1 January 2015	Cash Bonds payable

C) The market rate at the date of issuance is 10%. Prepare the journal entry for Jan 01, 2015

Cash flow	Table value@5%	Amount $	Present value$
Par(maturity value)
Interest annuity
Price of bonds

Date	Accounts	Debit $	Credit $
1 January 2015	Cash Discount on bonds payable Bonds payable