On January 1, 2019, Zoom corporation issued a $600,000 par value, 5%, 10-year bond. Interest will be paid every December 31.

a) prepare journal entries for: 1) issuance, and 2) the first interest payment if the bond is issued at par value.

b) what happens when the market interest rate equals 6%? Calculate the bond price.

c) Prepare the journal entry for the bond issued when the market interest rate is 6%.