Total Placement Service (TPS) issued \(\$ 600,000\) of \(20-\) year, \(7 \%\) bonds payable at maturity (par) value on February 1, 2008. The bonds pay interest each January 31 and July 31, and the company ends its accounting year on December 31.

1. Fill in the blanks to complete these statements:

a. TPS's bonds are priced at (express the price as a percentage) .

b. When TPS issued its bonds, the market interest rate was \(\%\).

c. The amount of bond discount or premium for TPS to account for is \(\$ \ldots . \quad\) because the bonds were issued at . 

2. Journalize for TPS

a. Issuance of the bonds payable on February 1, 2008. 

b. Payment of interest on July 31, 2008.

c. Accrual of interest at December 31, 2008. 

d. Payment of interest on January 31, 2009. 

Explanations are not required.

3. Show what TPS will report on its income statement for the year ended December 31, 2008, and on its classified balance sheet at December 31, 2008.