Question: Hartford Research issues bonds dated January 1 that pay interest semiannually on June 30 and December 31. The bonds have a $40,000 par value and

Hartford Research issues bonds dated January 1 that pay interest semiannually on June 30 and December 31. The bonds have a $40,000

par value and an annual contract rate of 10%, and they mature in 10 years.

Required

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

The market rate at the date of issuance is 8%. Check (1) Premium, $5,437

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

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

(3) Discount, $4.588

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