Hartford Research issues bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. The bonds have a $31,000 par value and an annual contract rate of 12%, and they mature in 10 years. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations.)

Required:

Consider each of the following three separate situations.

1.	The market rate at the date of issuance is 10%.

(a)

Complete the below table to determine the bonds' issue price on January 1, 2015.

Table values are based on:
n =
i =
Cash Flow	Table Value	Amount	Present Value
Par (maturity) value
Interest (annuity)
Price of bonds

(b)

Prepare the journal entry to record their issuance.

Journal Entry Worksheet

Record the issue of bonds with a par value of $31,000 cash on January 1, 2015. Assume that the market rate of interest at the date of issue is 10%.

Date

General Journal

Debit

Credit

Jan 01, 2015	Cash
	Premium on bonds payable
	Bonds payable

*Enter debits before credits