Park Corporation

Question:Park Corporation is planning to issue bonds with a face value of $2,017,000 and a coupon rate of 10 percent. The bonds mature in 5 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and does not use a premium account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.) Required:1. Prepare the journal entry to record the issuance of the bonds.2. 3. What bonds payable amount will Park report on its June 30 balance sheet?