Sandhill Products Ltd$.$ issued $$2\mathrm{.}98$ million of $5\%,5-$year bonds on January $1,2024.$ The bonds were dated January $1$ and pay interest annually. There is no collateral secured against the bonds and Sandhill Products may buy back the bonds at any time. The market interest rate was $6\%$ for these bonds. Sandhill has a calendar year end.

Click here to view the factor table. Present Value of $1$

Click here to view the factor table. Present Value of an Annuity of $1$

$($b$)$

Calculate the price of the bonds. $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided. Round answer to $0$ decimal places, e$.$g$.1,575.)$

Price of the bonds

Record the bond issue. $($List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.$)$

Date Account Titles

Jan. $1,2024$

Debit

Credit