Question Het * ith face value of S200 000 The bonds pay inte est on J e 30 and D

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Question Het * ith face value of S200 000 The bonds pay inte est on J e 30 and December 31 On January 1, 2018, Doctors Cedit Union DCU issued 7% 20-year bonds payable Read the tesuirements Requirement 1 "the market iterest rate 5% when DCU issues its bonds, wil te bonds be priced at bce value at a premum or at abount) plan The 7% bonds issued when the market interest rate is 5% will be priced at Requirement 2. ?fthe market interest rate is 8% when DCU issues hs bonds wll the bonds be priced at face value, at a premium, or at a dscoam? Explain The 7% bonds issued when the market interest rate is 8% will be priced at They are in smarketsoinvestors wa pay to acquire them They are in this market, so investors will pay 3. The issue price of the bonds is 93. Journalize the bond transactions. (Assume bonds payable are amortized using the straight-line amortization method Record debits first thern credits Seloct explanations on the last line of the journal entry Round your answers to the mearest whole dollan) a. Jounalize the issuance of the bonds on January 1, 2018 Choose trom any list or enter any number in the input fields and then continue to the next question

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Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Requirement 1 a Premium attractive more than face value Requirement 2 discount unattractive less than face value Requirement 3 Date Account Debit Credit a. issuance of Bond Jan 1 2018 Cash (93*2000) 186000 Discount on Bond Payable (200000-186000) 14000 Bond Payable 200000 b. interest and amortization Jun 30 2018 Interest Expense 7350 Discount on Bond Payable (14000/20)/2 350 Semi annually hence to be divided by 2 Cash (200000*7%)/2 7000 Semi annually hence to be divided by 2 c. interest and amortization Dec 31 2018 Interest Expense 7350 Discount on Bond Payable (14000/20)/2 350 Cash 7000 d. Retirement Dec 31 2037 Bond Payable 200000 Cash 200000

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