On March 1, 2010, Hrd Corporation issued a 6-year bond worth $422,000 with an interest rate of 8% per annum….

On March 1, 2010, Hrd Corporation issued a 6-year bond worth $422,000 with an interest rate of 8% per annum. Interest is to be paid semi-annually on August 31 and February 28. At the time of the issuance, the market interest rate was 12%. Hrd Corporation amortizes any premium or discount using the straight-line method.

a) Prepare the journal entry on March 1, 2010, to issue the bonds.