On January 1, Applied Technologies Corporation (ATC) issued $520,000 in bonds that mature in 10 years. The bonds have a stated interest rate of 9 percent. When the bonds were issued, the market interest rate was 9 percent. The bonds pay interest once per year on December 31. Required: 1. Determine the price at which the bonds were issued and the amount that ATC received at issuance. 2. & 3. Prepare the required journal entries to record the bond issuance and the first interest payment on December 31 assuming no interest has been accrued earlier in the year.

Req 1 Req 2 and 3 Determine the price at which the bonds were issued and the amount that ATC received at issuance. Amount Received at Issuance Journal entry worksheet 1 2 > Record the issuance of bonds of $520,000. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Journal entry worksheet 1 2 Record the interest payment on December 31. Note: Enter debits before credits. Date General Journal Debit Credit December 31