1 Question 2: 10 For each of the following three conditions, journalize the bond issuance and related first semiannual interest payment. The company uses effective interest rate for amortizing bond premium as well as bond discount. 1. Bonds Payable for 10 years with face value of $86,000 and stated interest rate of 14% paid semiannually. The market rate of interest is 14% at issuance. The present value of the bonds at issuance is $86,000. 2. Same bonds payable as in condition 1, but the market rate is 16%. The present value of the bonds at issuance is $77,594. 3. Same bonds payable as in condition 1, but the market interest rate is 8%. The present value of the bonds at issuance is $121,028