When market interest rates were 6%, swag company issued bonds on January 1st, year 1. The company issued the bonds with a face value of $350,000 that pay interest annually on December 31. swag comp sold its bonds at 106 with a coupon rate of 8%.

Required:

a) Record the issue of the bonds by the company. b) Record any entries required on Dec. 31, the firms year end, regarding interest on these bonds. c) What is the Carrying Value or Net Book Value of the companys Bonds Payable on Dec. 31st, year 1?