E$10-14($Static$)($Chapter Supplement$)$ Recording and Reporting a Bond Issued at a Premlum $($without

Premlum Account$)$ L$010-5$

Park Corporation is planning to issue bonds with a face value of $$2,000,000$ and a coupon rate of $10$ percent. The bonds mature in $10$

years and pay interest semiannually every June $30$ and December $31.$ All of the bonds were sold on January $1$ of this year. Park uses

the effective$-$interest amortization method and does not use a premium account. Assume an annual market rate of interest of $8\mathrm{.}5$

percent. $($FV of $$1.$ PV of $$1.$ FVA of $$1,$ and PVA of $$1)($Use the opproprlate factor$($s$)$ from the tables provlded.$)$

Requlred:

$1.$&$2.$ Prepare the journal entry to record the issuance of the bonds and the interest payment on June $30$ of this year.

What bonds payable amount will Park report on its June $30$ balance sheet?

Complete this question by entering your answers in the tabs below.

Req $1$ and $2$

Prepare the journal entry to record the issuance of the bonds and the interest payment on June $30$ of this year. $($If no entry is required

for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

Journal entry worksheet

Record the issuance of the bonds.

Note: Enter debits before credits.