2. Bonds Payable On January 1 June 30 and December 31 each year. Use this information to answer questions Q4-Q7 Q4. Assuming the market interest rate is 6.5%, answer the following questions , 2018, Water Mania issues $1,000,000 of 6% bonds, due in ten years, with interest payable semi-annually on 1) What is the face amount of the bonds? 2) What is the stated annual interest rate? What is the market annual interest rate? 3) 4) Will the original issue price of the bonds be higher or lower than the face amount of the bonds? 5) Will the bonds be issued at face amount, a discount, or a premium? 6) What is the total cash that will be paid for interest during the bonds' 10-year life (hint: the interest payment for each payment period is the same)? Q5. If the market interest rate is 6%, the bonds will issue at $1,000,000 1) 2) Record the bond issue on January 1, 2018 Record the first two semi-annual interest payments on June 30, 2018, and December 31, 2018 Q6. If the market interest rate is 7%, the bonds will issue at $928,938. Record the bond issue on January 1, 2018, and the first two semi-annual interest payments on June 30, 2018, and December 31, 2018 1) Record the bond issue on January 1, 2018 2) Record the first two semi-annual interest payments on June 30, 2018, and December 31, 2018 3) What is the bond's carrying value on June 30, 2018 and on December 31, 2018, respectively? Q7. If the market interest rate is 5%, the bonds will issue at $1,077,946 1) Record the bond issue on January 1, 2018 2) Record the first two semi-annual interest payments on June 30, 2018, and December 31, 2018 3) What is the unamortized premium/discount amount on June 30, 2018 and December 31,2018, respectively