Oriole Inc. is building a new hockey arena at a cost of $$2,650,000.$ It received a down payment of $$530,000$ from local businesses to support the project, and now need to borrow $$2,120,000$ to complete the project. It therefore decides to issue $$2,120,000$ of $10-$year, $10\mathrm{.}5\%$ bonds. These bonds were issued on January $1,2023,$ and pay interest annually on each January $1.$ The bonds yield $10\mathrm{.}5\%$ to the investor and have an effective interest rate to the issuer of $10\mathrm{.}40530\%.($There is an increased effective interest rate due to the capitalization of the bond issue costs.$)$ Any additional funds that are needed to complete the project will be obtained from local businesses. Oriole paid and capitalized $$53,000$ in bond issuance costs related to the bond issue. Oriole prepares financial statements in accordance with IFRS.

Using $(1)$ factor tables, $(2)$ a financial calculator, or $(3)$ Excel function PV$,$ calculate the value of the bonds and prepare the journal entry to record the issuance of the bonds on January $1,2023.($Hint: Refer to Chapter $3$ for tips on calculating. For the journal entry, use the amount arrived at using the time value of money tables.$)($Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answer to $0$ decimal places e$.$g$.58,971.$ Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $$No Entry$$ for the account titles and enter $0$ for the amounts. List debit entry before credit entry.$)$

Cash $?$

Bonds Payable $?$