Jester Company issues bonds with a par value of $600,000 on their stated issue date. The bonds mature in 10 years and pay 6% annual interest in semiannual payments. On the issue date, the annual market rate for the bonds is 8%. (Use Table B.1, Table B.3)

1.	What is the amount of each semiannual interest payment for these bonds? (Omit the "$" sign in your response.)

Semiannual interest payment

$

2.	How many semiannual interest payments will be made on these bonds over their life?

Number of payments

3.	Use the interest rates given to select whether the bonds are issued at par, at a discount, or at a premium.
	at a discount. at a premium. at par.

4.	Compute the price of the bonds as of their issue date. (Round "PV Factors" to 4 decimal places. Round intermediate calculations and final answer to the nearest dollar amount. Omit the "$" sign in your response.)

Issue price of bonds

$

5.	Prepare the journal entry to record the bonds issuance. (Round "PV Factors" to 4 decimal places. Round intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

General Journal	Debit	Credit
(Click to select)Bond interest payableBond interest expenseDiscount on bonds payablePremium on bonds payableCashBonds payableAccounts receivableAccounts payable
(Click to select)Accounts payableBond interest expensePremium on bonds payableBond interest payableCashAccounts receivableBonds payableDiscount on bonds payable
(Click to select)CashBond interest expenseDiscount on bonds payablePremium on bonds payableBonds payableAccounts payableAccounts receivableBond interest payable