Queen Energy Inc. issued bonds on January $1,2020,$ that pay interest semiannually on June $30$ and December $31.$ The par value of the bonds is $$310,000,$ the annual contract rate is $12\%,$ and the bonds mature in $10$ years. $($Use TABLE $14$A$\mathrm{.}1$ 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.

$1.8\%$

$2.12\%$

$3.14\%$

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 $(1)8\%,(2)12\%,(3)14\%.($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.$)$

$1.$ Record the sale of bonds on original issue date at $8\%$ market interest rate.

$2.$ Record issuance of bond payable at $12\%$ market interest rate.

$3.$ Record issuance of bond payable at $14\%$ market interest rate.