Hartford Research issues bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. The bonds have a $40,000 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.Round your 'Present Value' answers to the nearest whole dollar.)

Required:

Consider each of the following three separate situations.

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

(a)	Complete the below table to determine the bonds' issue price on January 1, 2013.
	Table values are based on: n = i = Cash Flow Table Value Amount Present Value Par (maturity) value Interest (annuity) Price of bonds

(b)	Prepare the journal entry to record their issuance.
	Journal Entry Worksheet Record the issue of bonds with a par value of $40,000 cash on January 1, 2013. Assume that the market rate of interest at the date of issue is 8%. Date General Journal Debit Credit Jan. 1, 2013 *Enter debits before credits

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

(a)	Complete the below table to determine the bonds' issue price on January 1, 2013.
	Table values are based on:n = i = Cash FlowTable ValueAmountPresent ValuePar (maturity) value Interest (annuity) Price of bonds

(b)	Prepare the journal entry to record their issuance.
	Journal Entry Worksheet Record the issue of bonds with a par value of $40,000 cash on January 1, 2013. Assume that the market rate of interest at the date of issue is 10%. Date General Journal Debit Credit Jan. 1, 2013 *Enter debits before credit

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

(a)	Complete the below table to determine the bonds' issue price on January 1, 2013.
	Table values are based on: n = i = Cash Flow Table Value Amount Present Value Par (maturity) value Interest (annuity) Price of bonds

(b)	Prepare the journal entry to record their issuance.
	Record the issue of bonds with a par value of $40,000 cash on January 1, 2013. Assume that the market rate of interest at the date of issue is 12%.