Swanson, Inc. issued $600,000 of 5%, 5-year bonds dated January 1, 2018 on July 1, 2018 when the market required 4% interest for bonds of similar risk. The bonds pay interest on December 31 each year.
Required: Determine the selling price of the bonds and prepare the journal entries for the issuance of the bonds and the payment of the first interest payment.

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The Answer of Swanson, Inc. issued $600,000 of 5%, 5-year bonds dated January 1, 2018 on July 1, 2018 when the market required 4% interest for bonds of similar risk. The bonds pay interest on December 31 each year.
Required: Determine the selling price of the bonds and prepare the journal entries for the issuance of the bonds and the payment of the first interest payment.