Problem Bonds Payable (

On January 1, 2021, Klein Company issued $1,100,000 par value, 8%, 10-year bonds, with interest payable semiannually on June 30th and December 31st. The market rate at the time the bonds were issued was 6%. The effective interest method is used for the amortization of any discount or premium. Round all entries to the nearest dollar. (Note: use present value tables at the end of the textbook: pages A-20 - A-23)

a) Determine the issue price of the bond and record the transaction(account names and dollar amounts) using the FSET associated with the issuance of the bonds. (Please show your work for partial credit.)

b) Determine the total interest expense reported on the 2021 income statement related to these bonds. (Please show your work for partial credit.)