"On December 31, 20X1, Art Levinsen Corporation issued 1,000, 6% bonds with a 20-year maturity. The bonds pay interest semiannually (on June 30 and December 31), and the market/effective interest rate is 10%. HINT: the face of all bonds is $1,000 unless otherwise stated."

a) Compute the price of the bonds.

b) Prepare the bond issuance journal entry Art Levinsen Corp. will record on December 31, 20X1.