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On 1/1/17 Barb, Inc. issues a $25,000 bond with a term of 20 years and...

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Accounting

On 1/1/17 Barb, Inc. issues a $25,000 bond with a term of 20 years and a stated rate of 8%, with interest payments occurring annually every December 31. The market rate of interest on this bond is 4%. The proceeds (purchase price) of the bond are $38,590.33. What journal entry will Barb, Inc. record on 1/1/17 when the bond is issued? You may round your numbers to the nearest dollar. Please clearly label your debits and credits, as follows:

Debit: [account name] XXXX

Credit: [account name] XXXX

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