Question

hartford research issues bonds dated january 1 that pay interest semiannually on june 30 and december 31. the bonds have a $21,000 par value and an annual contract rate of 10%, and they mature in 10 years. (table b.1 (opens in a new tab), table b.2 (opens in a new tab), table b.3 (opens in a new tab), and table b.4 (opens in a new tab)) note: use appropriate factor(s) from the tables provided. round all table values to 4 decimal places, and use the rounded table values in calculations. complete this question by entering your answers in the tabs below. required 1a required 1b required 2a required 2b required 3a required 3b prepare the journal entry to record their issuance, if the market rate at the date of issuance is 10%. view transaction list journal entry worksheet 1 record the issue of bonds with a par value of $21,000 on january 1. assume that the market rate of interest at the date of issue is 10%. note: enter debits before credits. date general journal debit credit january 01

Explanation:

Step1: Analyze bond pricing condition

When the market interest rate (10%) equals the bond's contract rate (10%), the bonds are issued at par value, so cash received equals par value.

Step2: Identify journal entry accounts

Debit Cash for the amount received, and Credit Bonds Payable for the par value of the bonds.

Answer:

Date	General Journal	Debit	Credit
January 01	Bonds Payable		21,000