Problem 14-1A Calculating bond prices and recording issuance with journal entries LO3, 5, 6 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 $250,000, the annual contract rate is 6%, and the bonds mature in 10 years. (Use TABLE 14A1 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. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar) Market rate issue Price of the interest Bonds (1) 122 (3) 6% For each of these three situations, prepare the journal entry that would record the issuance, assuming the market interest e at the date of issuance was (1) 4%, (2) 6%, (3) 8%. (Use PV tables in determining the issue price of the bonds. Do not und intermediate calculations. Round the final answers to the nearest whole dollar.) View transaction list Journal entry worksheet
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