On December $1,$ Somart issues $$41,500$ of $8-$year, $6\%$ bonds for $$39,840.$ Interest is payable annually on May $1.$

a$.$ Record the issuance of the bonds on December $1.($List debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Date Account Titles and Explanation

Debit

Credit

Dec. $1$

b$.$ Show how the bonds will be reported if a balance sheet was prepar the date of issue.