Return to question Required information (The following information applies to the questions displayed below) Enviro Company issues 8%, 10-year bonds with a par value of $310,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 1/2 Prepare the journal entry for the issuance of the bonds. Assume the bonds are issued for cash on January 1. Answer is complete but not entirely correct. No Date Credit Jan 01 General Journal Cash Discount on bonds payable Bonds payable Debit 310,000 42,500 00 340,000 Required information (The following information applies to the questions displayed below.) Enviro Company issues 8%, 10-year bonds with a par value of $310,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 1/2. Confirm that the bonds' selling price is approximately correct (within 1%). Use present value Table B1 and Table B.3 in Appendix B. (Round all table values to 4 decimal places, and use the rounded table values in calculations.) = Selling Price P resent Value Par Value x Price 87 1/2 Cash Flow Table Value $310,000 par (maturity) value $12,400 interest payment Price of Bond Difference due to rounding of table values