Required information

E$10-9($Algo$)($Chapter Supplement$)$ Recording and Reporting a Bond Issued at a Discount $($without

Discount Account$)$ L$010-4$

$[$The following information applies to the questions displayed below.$]$

Denzel Corporation is planning to issue bonds with a face value of $$720,000$ and a coupon rate of $7\mathrm{.}5$ percent. The bonds

mature in $4$ years and pay interest semiannually every June $30$ and December $31.$ All of the bonds were sold on January $1$

of this year. Denzel uses the effective$-$interest amortization method and does not use a discount account. Assume an

annual market rate of interest of $8\mathrm{.}5$ percent. $($FV of $$1,PV$ of $$1,$FVA of $$1,$ and PVA of $$1)$

NOte: Use appropriate factor$($s$)$ from the tables provided.

$10-9$ Part $1$

equired:

Prepare the journal entry to record the issuance of the bonds.

ote: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round your

termediate calculations and final answers to whole dollars.