Stowers Research issues bonds dated January 1, 2011, that pay interest semiannually on June 30 and December 31. The bonds have a $35,000 par value and an annual contract rate of 10%, and they mature in 10 years.

1.	The market rate at the date of issuance is 8%.

(a)	Determine the bonds' issue price on January 1, 2011. (Round "PV Factors" to 4 decimal places, intermediate calculations and final answer to the nearest dollar amount. Omit the "$" sign in your response.)

Issue price

$

(b)	Prepare the journal entry to record their issuance. (Round "PV Factors" to 4 decimal places, intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

2.	The market rate at the date of issuance is 10%.

(a)	Determine the bonds' issue price on January 1, 2011. (Round "PV Factors" to 4 decimal places, intermediate calculations and final answer to the nearest dollar amount. Omit the "$" sign in your response.)

Issue price

$

(b)	Prepare the journal entry to record their issuance. (Round "PV Factors" to 4 decimal places, intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
Jan. 1	(Click to select) Cash Bond interest payable Accounts receivable Accounts payable Bonds payable Bond interest expense Discount on bonds payable Premium on bonds payable
	(Click to select) Bond interest expense Cash Accounts receivable Accounts payable Premium on bonds payable Bond interest payable Discount on bonds payable Bonds payable

Date	General Journal	Debit	Credit
Jan. 1	(Click to select) Accounts receivable Bond interest payable Premium on bonds payable Bond interest expense Discount on bonds payable Bonds payable Accounts payable Cash
	(Click to select) Bonds payable Cash Bond interest expense Discount on bonds payable Accounts payable Premium on bonds payable Accounts receivable Bond interest payable
	(Click to select) Cash Bonds payable Premium on bonds payable Accounts payable Bond interest expense Accounts receivable Discount on bonds payable Bond interest payable

3.	The market rate at the date of issuance is 12%.

(a)	Determine the bonds' issue price on January 1, 2011. (Round "PV Factors" to 4 decimal places, intermediate calculations and final answer to the nearest dollar amount. Omit the "$" sign in your response.)

Issue price

$

(b)	Prepare the journal entry to record their issuance. (Round "PV Factors" to 4 decimal places, intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
Jan. 1	(Click to select) Accounts receivable Bond interest payable Cash Bonds payable Bond interest expenses Accounts payable Premium on bonds payable Discount on bonds payable
	(Click to select) Bond interest expenses Bonds payable Discount on bonds payable Cash Bond interest payable Accounts payable Premium on bonds payable Accounts receivable
	(Click to select) Premium on bonds payable Accounts payable Accounts receivable Bond interest payable Bond interest expense Cash Bonds payable Discount on bonds payable