Question: MD Corporation issues 8 % , 1 0 - year bonds with a par value of $ 5 0 0 , 0 0 0 and

MD Corporation issues 8%,10-year bonds with a par value of $500,000 and semiannual interest
payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling
price of 8712. Prepare the journal entry for the issuance of the bonds for cash on January 1.
MD Corporation issues 8%,10-year bonds with a par value of $500,000

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