Required information

E$10-9($Static$)($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.$]$

Park Corporation is planning to issue bonds with a face value of $$600,000$ and a coupon rate of $7\mathrm{.}5$ percent. The bonds

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

January $1$ of this year. Park 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)($Use the appropriate

factor$($s$)$ from the tables provided.$)$

E$10-9$ Part $1$

Required:

Prepare the journal entry to record the issuance of the bonds. $($If no entry is required for a transaction$/$event$,$ select $"$No journal

entry required" in the first account field. Round your final answers to whole dollars.$)$

Journal entry worksheet

Record the issuance of bonds.

Note: Enter debits before credits.