On May $1,2023,$ Cullumber Corporation, a publicly listed corporation, issued $$231,000$ of five$-$year, $8\%$ bonds, with interest payable semi$-$annually on November $1$ and May $1.$ The bonds were issued to yield a market interest rate of $6\%.$ Cullumber uses the effective interest method.

$($a$)$ Calculate the present value $($issue price$)$ of the bonds on May $1(1)$ using the factor tables provided $(2)$ a financial calculator, or $(3)$ Excel function PV$.($Hint: Refer to Chapter $3$ for tips on calculating.$)($Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answer to $0$ decimal places e$.$g$.58,971.)$

Present value of the bonds $enter the present value of the bonds in dollars rounded to $0$ decimal places

$250705$

Correct answer

$($b$)$ Prepare the journal entry to record the issue of the bonds on May $1.($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. List debit entry before credit entry. Round answer to $0$ decimal places, e$.$g$.5,275.)$

$($c$)$ Prepare the journal entries to record the first and second interest payments on November $1,2023,$ and May $1,2024.($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. List all debit entries before credit entries. Round answers to $0$ decimal places, e$.$g$.5,275.)$