E10-9 (Chapter Supplement) Recording and Reporting a Bond Issued at a Discount (without Discount Account) LO10-4 [The following information applies to the questions displayed below.] Park Corporation is planning to issue bonds with a face value of $600,000 and a coupon rate of 7.5 percent. The bonds mature in four 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 discount account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Required 1. Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select No journal entry required" in the first account field. Round your final answer to whole dollars.) View transaction list Journal entry worksheet Record the issuance of bonds. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Cash 580,009 Record entry Clear entry View general journal 2. Prepare the journal entry to record 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. Round your final answer to whole dollars.) View transaction list Journal entry worksheet Record the interest payment on June 30 using effective-interest amortization. Note: Enter debits before credits. Date General Journal Debit Credit June 30 Record entry Clear entry View general journal E10-9 Part3 3. What bond payable amount will Park report on its June 30 balance sheet? PARK CORPORATION Balance Sheet (Partial) At June 30 Long-term liabilities