Hartford Research issues bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. The bonds have a $25,000 par value and an annual contract rate of 10%, and they mature in 10 years. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations.)
|1.||The market rate at the date of issuance is 8%.|
Complete the below table to determine the bonds’ issue price on January 1, 2013.
Prepare the journal entry to record their issuance.