Queen Energy Inc. issued bonds on January $1,2023,$ that pay interest semiannually on June $30$ and December $31.$ The par value of the bonds is $$170,000,$ the annual contract rate is $6\%,$ and the bonds mature in $10$ years. $($Use TABLE $14A\mathrm{.}1$ and TABLE $14$A$\mathrm{.}2.)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

a$.$ For each of these three situations, determine the issue price of the bonds. $($Do not round intermediate calculations. Round the final answers to the nearest whole dollar.$)$

$\backslash$table$[[,\backslash$table$[[$Market rate$],[$interest$]],\backslash$table$[[$Issue Price of the$],[$Bonds$]]],[(1),4\%,],[(2),6\%,],[(3),8\%,]]$

b$.$ For each of these three situations, prepare the journal entry that would record the issuance, assuming the market interest rate at the date of issuance was $(1)4\%,(2)6\%,(3)8\%.($Use PV tables in determining the issue price of the bonds. Do not round intermediate calculations. Round the final answers to the nearest whole dollar.$)$

Journal entry worksheet

$1$

$2$

$3$

Record the sale of bonds on original issue date at $4\%$ market interest rate.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $01,2023,,,]]$