Required information
EStaticChapter Supplement Recording and Reporting a Bond Issued at a Discount without
Discount Account L
The following information applies to the questions displayed below.
Park Corporation is planning to issue bonds with a face value of $ and a coupon rate of percent. The bonds
mature in four years and pay interest semiannually every June and December All of the bonds were sold on
January of this year. Park uses the effectiveinterest amortization method and does not use a discount account. Assume
an annual market rate of interest of percent. FV of $ PV of $ FVA of $ and PVA of $Use the appropriate
factors from the tables provided.
E Part
Required:
Prepare the journal entry to record the issuance of the bonds. If no entry is required for a transactionevent select No journal
entry required" in the first account field. Round your final answers to whole dollars.
Journal entry worksheet
Record the issuance of bonds.
Note: Enter debits before credits.
