Vanguard Corporation issued $$9,000,000$ of $14\%$ bonds on November $1,2023,$ due on November $1,2029.$ The interest is to be paid twice a year on October $31$ and April $30.$ The bonds were sold to yield $8\%$ effective annual interest. Grove Corporation closes its books annually on December $31.$

Present value of $1$ for $12$ periods at $4\mathrm{.}0\%0\mathrm{.}62460$

Present value of $1$ for $12$ periods at $7\mathrm{.}0\%0\mathrm{.}44401$

Present value of an ordinary annuity for $12$ periods at $4\mathrm{.}0\%9\mathrm{.}38507$

Present value of an ordinary annuity for $12$ periods at $7\mathrm{.}0\%7\mathrm{.}94269$

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 $31,2024$