On January $1,2022,$ Yankee Road Corporation issued $$1,000,000$ par value, $3\%,5-$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 $1,$ market rate of interest on the date of the bond issue was $6\%.$ The company's fiscal year ends on December $31.$

Future Value of $$1$ table Future Value of an Ordinary Annuity table Future Value of an Annuity Due table

Present Value of $$1$ table Present Value of an Ordinary Annuity table Present Value of an Annuity Due table

Read the requirements.

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

The issue price of the debt $=$

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

$\backslash$table$[[$Date$,\backslash$table$[[$Cash$],[$Interest$]],\backslash$table$[[$Effective$],[$Interest$]],\backslash$table$[[$Discount$/$Premium$],[$Amortization$]],\backslash$table$[[$Carrying$],[$Value$]]],[$January $1,2022,,,,],[$July $1,2022,,,,],[$January $1,2023,,,,],[$July $1,2023,,,,],[$January $1,2024,,,,],[$July $1,2024,,,,],[$January $1,2025,,,,]]$

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. $($Round your answers to the nearest whole dollar. Record debits first, then credits. Exclude explanations from any journal entries.$)$

Begin by recording the issuance of the bonds payable.

$\backslash$table$[[$Account$,$January $1,2022],[,],[,],[,],[,]]$