Requlred Information

E$10-9($Static$)($Chapter Supplement$)$ Recording and Reporting a Bond Issued at a Discount $($without

Discount Account$)$ L$010-4$

$[$The following information applies to the questions displayed below.$]$

Park Corporation is planning to issue bonds with a face value of $$600,000$ and a coupon rate of $7\mathrm{.}5$ percent. The bonds

mature in four years and pay interest semiannually every June $30$ and December $31.$ All of the bonds were sold on

January $1$ of this year. Park uses the effective$-$interest amortization method and does not use a discount account. Assume

an annual market rate of interest of $8\mathrm{.}5$ percent. $($FV of $$1.$ PV of $$1.$ FVA of $$1,$ and PVA of $$1)($Use the opproprlote

factor$($s$)$ from the tobles provlded.$)$

E$10-9$ Part $2$

Prepare the journal entry to record the interest payment on June $30$ of this year. $($If no entry ls requlred for a transactlon$/$event$,$

;elect $"$No journal entry requlred" In the first account fleld. Round your final answers to whole dollars.$)$

Journal entry worksheet

$1$

Record the payment of interest on June $30$ using the effective$-$interest

amortization method.

Note: Enter debits before credits.