Amalia, Inc., issued $590,000 of 5-year, 10 percent bonds payable on January 1. Amalia, Inc., pays interest each January 1 and July 1 and amortizes any discount or premium by the straight-line method. Amalia, Inc., can issue its bonds payable under various conditions: Click the icon to view the conditions.) Read the requirements Requirement 1. Journalize Amalia's issuance of the bonds and first semiannual interest payment for each situation. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) a. Record the issuance of the bonds payable at par value. Journal Entry Date Accounts Debit Credit Jan 1 a. Record the payment of semiannual interest when the bonds are issued at par. Journal Entry Date Accounts Debit Credit Jul 1 b. Record the issuance at a price of $545,000 when the market rate was above 10 percent Journal Entry Date Accounts Debit Credit Jan 1 b. Record the payment of semiannual interest when the bonds are issued at a price of $545,000 and the market rate was above 10 percent. (Round to the nearest whole number.) Journal Entry Accounts Date Debit Credit Jul 1 c. Record the issuance at a price of $660,000 when the market rate was below 10 percent. Journal Entry Accounts Date Debit Credit Jan 1 c. Record the payment of semiannual interest when the bonds are issued at a price of $660,000 when the market rate was below 10 percent. (Round to the nearest whole number.) Journal Entry Accounts Date Debit Credit Jul 1 Requirement 2. Which condition results in the most interest expense for Amalia, Inc.? Explain in detail. The results in the most interest expense. The reason for this is because Amalia More info a. Issuance at par value b. Issuance at a price of $545,000 when the market rate was above 10 percent C. Issuance at a price of $660,000 when the market rate was below 10 percent Print Done