Question: On January 1 , 2 0 2 3 , Kristopher Co . issued ten - year bonds with a face value of $ 7 ,

On January 1,2023, Kristopher Co. issued ten-year bonds with a face value of $7,000,000 and a stated interest rate of 5%, payable semiannually on June 30 and December 31. The bonds were sold to yield 4%.

Required:

a. Calculate the issue price of the bonds.
b. Prepare journal entries for the issuance on January 1,2023 and the June 30,2023 interest payment date, assuming the company uses the effective interest method for amortizing any premium or discount.

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