Lincoln Inc. is planning to issue bonds with a face value of $300,000 and a coupon rate of 5 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. The bonds were sold on January 1 of 2023. Lincoln Inc. uses the effective-interest amortization method and uses premium and discount accounts. Assume an annual market rate of interest of 6 percent. Round your final answers to whole dollars.

Required:

Calculate the issuance price of the bonds: ____________________

Prepare the journal entries to record, (1) issuance of the bonds on January 1 and (2) interest payments on June 30 and December 31, 2023 of this year.

General Journal	Debit	Credit
January 1:
Cash A/c Dr
To bonds payable
To premium on bonds payable
June 30:
Interest expense dr
Premium on bond payable dr
To cash
December 31:
Interest expense
Premium on bonds payable
cash

What bonds payable amount will Avalon Inc. report on its June 30, 2023 balance sheet? __________________