On May 1, 2020 Crop Corporation issued $450,000 worth of 7% bonds due in 5 years. Interest is paid semi-annually on November 1 and May 1 of each year, and Crop Corporation's year end is December 31. On the issuance date, the market rate of interest was 8%, resulting in a price of $431,767 for these bonds. Note: The premium/discount is amortized using the straight-line method.

Required
a) Is this bond issued at a discount or at a premium?:

b) Prepare the journal entry on May 1, 2020, to issue the bonds.