Question: Stowers Research issues bonds dated January 1, 2011, that pay interest semiannually on June 30 and December 31. The bonds have a $28,000 par value

Stowers Research issues bonds dated January 1, 2011, that pay interest semiannually on June 30 and December 31. The bonds have a $28,000 par value and an annual contract rate of 8%, and they mature in 10 years.1. The market rate at the date of issuance is 6%.
(a) Determine the bonds' issue price on January 1, 2011.
(b) Prepare the journal entry to record their issuance.
2. The market rate at the date of issuance is 8%.
(a) Determine the bonds' issue price on January 1, 2011.
(b) Prepare the journal entry to record their issuance.
3 The market rate at the date of issuance is 12%.
(c) Determine the bonds' issue price on January 1, 2011.
(c) Prepare the journal entry to record their issuance.

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