Alpha Watches Company has 8%, 10-year bonds payable that mature on June 30, 2028. The bonds are issued on June 30, 2018, and Alpha Watches Company pays interest each June 30 and December 31. Requirements: 1. Will the bonds be issued at face value, at a premium, or at a discount if the market interest rate on the date of issuance is 7%? If the market interest rate is 10%? 2. Alpha Watches Company issued $100,000 of the bonds at 87.548. Round all calculations to the nearest dollar. a. Record the issuance of the bonds on June 30, 2018. b. Record the payment of interest and amortization of the discount on December 31, 2018. Use the straight-line amortization method. c. Compute the bond's carrying amount at December 31, 2018. d. Record the payment of interest and amortization of discount on June 30, 2019. 3. What are the two categories of liabilities reported on the balance sheet? Provide examples. 4. Why would a company choose to issue bonds instead of issuing a stock