Hartford Research issues bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. The bonds have a $26,000 par value and an annual contract rate of 12%, and they mature in 10 years. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations.)

b) Prepare the journal entry to record their issuance.

Record the issue of bonds with a par value of $26,000.00 cash on Jan. 1, 2013. Assume that the market rate of interest at the date of issue is 10%.

Date- General Journal- Debit- Credit-

Jan. 1,2013

* Choose from the following choices for the title (general journal)

Accts Payable - Accts Receivable - Accumulated Depreciation - Bond Interest expense - Bond Interest Payable - Bonds Payable - Cash - Common Stock - Contributed Capital in excess of par value - Depreciation expense - Discount on bonds payable - Gain on retirement of bonds payable - Interest Payable - Lease Liability - Leased Asset - Loss on retirement of bonds payable - Premium on bonds payable - Rental expense