On January $1,2024,$ NFB Visual Aids issued $$650,000$ of its $20-$year, $10\%$ bonds.

The bonds were priced to yield $12\%$

Interest is payable semiannually on June $30$ and December $31.$

NFB Visual Aids records interest expense at the effective rate and elected the option to report these bonds at their fair value.

On December $31,2024,$ the fair value of the bonds was $$555,000$ as determined by their market value in the over$-$the$-$counter market.

General $($risk$-$free$)$ interest rates did not change during $2024.$

Required:

$1-$a$.$ Determine the price of the bonds at January $1,2024.$

$1-$b to $4.$ Prepare the necessary journal entries.

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

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Complete this question by entering your answers in the tabs below.

Req $1B$ to $4$

Prepare the necessary journal entries.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round your intermediate calculations and final answers to the nearest whole dollar.

$\backslash$table$[[$No$,$Date,Gent,,Debit,Credit$],[1,$January $01,2024,$Cash,$0,650,000,],[,$Discount on bonds payable,$0,,95,000$