Answer:
the market price of the bonds:
PV of face value = $140 / (1 + 5%)²⁰ = $52.765 million
PV of coupon payments = ($140 x 4%) x 12.462 (PV annuity factor, 5%, 20 periods) = $69.787 million
total market value = $122.552 million
Journal entry to record bond issuance:
Dr Cash 122,552,000
Dr Discount on bonds payable 17,448,000
Cr Bonds payable 140,000,000