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Queen Energy Inc. issued bonds on January 1,2020, that pay interest semiannually on June 30...

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Accounting

Queen Energy Inc. issued bonds on January 1,2020, that pay interest semiannually on June 30 and December 31. The par value of the bonds is $310,000, the annual contract rate is 12%, and the bonds mature in 10 years. (Use TABLE 14A.1 and TABLE 14A.2.)(Use appropriate factor(s) from the tables provided.)
Required:
a. For each of these three situations, determine the issue price of the bonds.
1.8%
2.12%
3.14%
b. For each of these three situations, prepare the journal entry that would record the issuance, assuming the market interest rate at the date of issuance was (1)8%,(2)12%,(3)14%.(Use PV tables in determining the issue price of the bonds. Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)
1. Record the sale of bonds on original issue date at 8% market interest rate.
2. Record issuance of bond payable at 12% market interest rate.
3. Record issuance of bond payable at 14% market interest rate.

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