on January $1,2020,$ Hannigan Company issued bonds with a face value of $$600,000$ with maturity in $5$ years. The bonds carry a stated interest of $7\%$ payable each January $1.$

a$.$ Calculate the market value of the bonds at issuance assuming market interest rate is $9\%$ AND prepare the journal entry for the issuance of the bonds including any discount or premium.

b$.$ Calculate the market value of the bonds at issuance assuming market interest rate is $5\%$ AND prepare the journal entry for the issuance of the bonds including any discount or premium.

Solution area:

a$.$ Market Value $=$

b$.$ Market Value $=$