Vanguard Corporation issued $$11,000,000$ of $10\%$ bonds on September $1,2023,$ due on September $1,2029.$ The interest is to be paid twice a year on August $31$ and February $28.$ The bonds were sold to yield $6\%$ effective annual interest. Grove Corporation closes its books annually on December $31.$

Present value of $1$ for $12$ periods at $3\mathrm{.}0\%$

$0\mathrm{.}70138$

Present value of $1$ for $12$ periods at $5\mathrm{.}0\%$

$0\mathrm{.}55684$

Present value of an ordinary annuity for $12$

periods at $3\mathrm{.}0\%$

$9\mathrm{.}95400$

Present value of an ordinary annuity for $12$

periods at $5,0\%$

$8\mathrm{.}86325$

Instructions

$($a$)$ Calculate the issuing price of the bonds $($show your work$).$

$($b$)$ Prepare the journal entries for $2024$ using the effective$-$interest method.

$($c$)$ Compute the interest expense to be reported in the income statement for the year ended, December $31,2024$