Ike issues $$260,000$ of $9\%,$ three$-$year bonds dated January $1,2021,$ that pay interest semiannually on June $30$ and December $31.$ They are issued at $$266,811$ when the market rate is $8\%.$

Required:

Prepare the January $1$ journal entry to record the bonds' issuance.

Journal entry worksheet

$1$

Record the issue of bonds with a par value of $$260,000$ on January $1,2021$ at an issue price of $$266,811.$