Park Corporation is planning to issue bonds with a face value of $620,000 and a coupon rate of 7.5 percent. The bonds mature in 8 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.)

Required:

1. Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

	No	Date	General Journal	Debit	Credit
1	1	January 01	Cash	?
2			Discount on bonds payable	?
3			Bonds payable		?

2. Prepare the journal entry to record the interest payment on June 30 of this year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

	No	Date	General Journal	Debit	Credit
1	1	June 30	Interest Expense	?
2			Discount on bonds payable	?
3			Cash		?

3. What bond payable amount will Park report on its June 30 balance sheet? (Enter all amounts with a positive sign.)

PARK CORPORATION
Balance Sheet (Partial)
At June 30
Long-term liabilities
Bonds payable	?
Discount on bonds payable	??
		?-