Prepare the journal entry to record issuance of the bonds

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Reference no: EM131211150

Park Corporation is planning to issue bonds with a face value of $600,000 and a coupon rate of 7.5 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 also uses a discount account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1)

1. Prepare the journal entry to record the issuance of the bonds.

Reference no: EM131211150

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