Problem 14-22 Determine bond price; record interest; report bonds at fair value [LO14-6]

On January 1, 2018, NFB Visual Aids issued $900,000 of its 20-year, 6% bonds. The bonds were priced to yield 8%. Interest is payable semiannually on June 30 and December 31. NFB Visual Aids records interest expense at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2018, the fair value of the bonds was $730,000 as determined by their market value in the over-the-counter market. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required:

1-a. Determine the price of the bonds at January 1, 2018. 1-b to 4. Prepare the necessary Journal entries

its just journal entry and its 4 that what is mean