Micro Company issued 7 year bonds on January 1, 2016. The face value of the bonds is $300,000. The stated interest rate on the bonds is 10 percent. The market rate of interest at the time of issuance was 8 percent. The bonds pay interest semi-annually on June 30th and December 31st.

REQUIRED:

1. Calculate the issuance (sale) price of the bonds.2. Record the journal entry for the issuance (sale) of the bonds on January 1, 2016.