1.On January 1, a business issues $500,000 face value, 10 year, 10% contract rate bonds dated January 1.Interest is payable semiannually each June 30 and December 31.Please help create the necessary journal entries on January 1 to issue the bonds under the following independent circumstances.(Please be sure to show all work.)

A.The market interest rate on January 1 is 10%.

B. The market interest rate on January 1 is 12%.

C. The market interest rate on January 1 is 8%.