On May 1, 2023, Hrd Corporation issued a 6-year bond worth $394,000 with an interest rate of 7% per annum. Interest is to be paid semi-annually on October 31 and April 30. At the time of the issuance, the market interest rate was 12%. Hrd Corporation amortizes any premium or discount using the effective interest method.

Calculate the bond issue price and the resulting premium or discount. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. For transactions with more than one debit or credit, enter the accounts in alphabetical order. For bond calculations, use the PV tables in Chapter 7 of the textbook or use a financial calculator. Bond Issue Price: $Answer Premium or Discount: $Answer b) Prepare journal entries to record the following bonds payable transactions. 1) Issuance of bonds on May 1, 2023.

Date	Account Title and Explanation	Debit	Credit
May 1	AnswerBonds PayableCashDiscount on Bonds PayableGain on Bond RedemptionInterest ExpenseInterest PayableLoss on Bond RedemptionNotes PayablePremium on Bonds PayableSales Revenue	Answer
	AnswerBonds PayableCashDiscount on Bonds PayableGain on Bond RedemptionInterest ExpenseInterest PayableLoss on Bond RedemptionNotes PayablePremium on Bonds PayableSales Revenue	Answer
	AnswerBonds PayableCashDiscount on Bonds PayableGain on Bond RedemptionInterest ExpenseInterest PayableLoss on Bond RedemptionNotes PayablePremium on Bonds PayableSales Revenue		Answer
	To record bond issuance

2) Payment of interest and amortization of premium or discount on October 31, 2023.

Date	Account Title and Explanation	Debit	Credit
Oct 31	AnswerBonds PayableCashDiscount on Bonds PayableGain on Bond RedemptionInterest ExpenseInterest PayableLoss on Bond RedemptionNotes PayablePremium on Bonds PayableSales Revenue	Answer
	AnswerBonds PayableCashDiscount on Bonds PayableGain on Bond RedemptionInterest ExpenseInterest PayableLoss on Bond RedemptionNotes PayablePremium on Bonds PayableSales Revenue		Answer
	AnswerBonds PayableCashDiscount on Bonds PayableGain on Bond RedemptionInterest ExpenseInterest PayableLoss on Bond RedemptionNotes PayablePremium on Bonds PayableSales Revenue		Answer
	To record first payment of interest and amortization

3) Accrual of interest and amortization of premium or discount on December 31, 2023, which is the company's year-end.

Date	Account Title and Explanation	Debit	Credit
Dec 31	AnswerBonds PayableCashDiscount on Bonds PayableGain on Bond RedemptionInterest ExpenseInterest PayableLoss on Bond RedemptionNotes PayablePremium on Bonds PayableSales Revenue	Answer
	AnswerBonds PayableCashDiscount on Bonds PayableGain on Bond RedemptionInterest ExpenseInterest PayableLoss on Bond RedemptionNotes PayablePremium on Bonds PayableSales Revenue		Answer
	AnswerBonds PayableCashDiscount on Bonds PayableGain on Bond RedemptionInterest ExpenseInterest PayableLoss on Bond RedemptionNotes PayablePremium on Bonds PayableSales Revenue		Answer
	To record the interest accrued on bonds payable

4) Payment of interest and amortization of premium or discount on April 30, 2024.

Date	Account Title and Explanation	Debit	Credit
Apr 30	AnswerBonds PayableCashDiscount on Bonds PayableGain on Bond RedemptionInterest ExpenseInterest PayableLoss on Bond RedemptionNotes PayablePremium on Bonds PayableSales Revenue	Answer
	AnswerBonds PayableCashDiscount on Bonds PayableGain on Bond RedemptionInterest ExpenseInterest PayableLoss on Bond RedemptionNotes PayablePremium on Bonds PayableSales Revenue	Answer
	AnswerBonds PayableCashDiscount on Bonds PayableGain on Bond RedemptionInterest ExpenseInterest PayableLoss on Bond RedemptionNotes PayablePremium on Bonds PayableSales Revenue		Answer
	AnswerBonds PayableCashDiscount on Bonds PayableGain on Bond RedemptionInterest ExpenseInterest PayableLoss on Bond RedemptionNotes PayablePremium on Bonds PayableSales Revenue		Answer
	To record payment of interest and amortization

5) Redemption of the bond for its carrying value one year before maturity on May 1.

Date	Account Title and Explanation	Debit	Credit
May 1	AnswerBonds PayableCashDiscount on Bonds PayableGain on Bond RedemptionInterest ExpenseInterest PayableLoss on Bond RedemptionNotes PayablePremium on Bonds PayableSales Revenue	Answer
	AnswerBonds PayableCashDiscount on Bonds PayableGain on Bond RedemptionInterest ExpenseInterest PayableLoss on Bond RedemptionNotes PayablePremium on Bonds PayableSales Revenue		Answer
	AnswerBonds PayableCashDiscount on Bonds PayableGain on Bond RedemptionInterest ExpenseInterest PayableLoss on Bond RedemptionNotes PayablePremium on Bonds PayableSales Revenue		Answer
	Redemption of bond