Flagstaff Systems issues bonds dated January 1 that pay interest samiannually on June 30 and December 31. The bonds have a $90,000 par value and an annual contract rate of 12%, and they mature in five years.

For each separate situation, (a) determine the bonds' issue price on January 1 and (b) prepare the journal entry to record their issuance.

1. The market rate at the date of issuance is 10%.

2. The market rate at the date of issuance is 12%.

3. The market rate at the date of issuance is 14%.