On January $1,2022,$ the Landon Capital Partners issued $ $600$ comma $000$ par$$ value, $6\%,6-$year bonds. Interest is payable semiannually each January $1$ and July $1$ with the first interest payment due at the end of the period on July$1,2022.$ The market rate of interest on the date of the bond issue was $4\%.$

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Part $1$

Requirement a$.$ Determine the issue price of the debt. $($Use the present value and future value$$ tables, the formula$$ method, a financial$$ calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula$$ method, use factor amounts rounded to five decimal$$ places, X$.$XXXXX$.$ Round your final answer to the nearest whole$$ dollar.$)$

The issue price of the debt $=$

Part $2$

Requirement b$.$ Prepare the amortization table for the bond issue through January $1,2025,$ assuming that Landon uses the effective interest rate method of amortization. $($Round each calculation to the nearest whole number and then use the rounded value for each subsequent calculation in the$$ table.$)$

Cash

Effective

Discount$/$Premium

Carrying

Date

Interest

Interest

Amortization

Value

January $1,2022$

July $1,2022$

January $1,2023$

July $1,2023$

January $1,2024$

July $1,2024$

January $1,2025$

Part $3$

Requirement c$.$ Prepare the journal entries to record the bond$$ issue, the first interest$$ entry, and payment of the bonds at maturity. Assume that the company uses a premium or discount$$ account, if needed. $($Record debits$$ first, then credits. Exclude explanations from any journal entries. Use the rounded values from previous$$ calculations.$)$

Begin by recording the issuance of the bonds payable.

Account

January $1,2022$

Part $4$

Record the first semiannual interest payment.

Account

July $1,2022$

Part $5$

Prepare the journal entry to record payment of the bonds at maturity. $($Assume that any rounding differences have been adjusted$$ for.$)$

Account

January $1,2027$