Assume that on April 1, 2018, Roland Corp. issues 8 percent, 10-year bonds payable with a maturity value of $600,000. The bonds pay interest on March 31 and September 30, and Roland amortizes any premium or discount using the straight-line method. Roland's fiscal year end is December 31. Read the requirements. labies to be nearest whole uoliai. Record Levis VIISI, Len creuils. cxciude explanations Trom any joumai emes.) a. Issuance of the bonds on April 1, 2018. Journal Entry - X Requirements Date Accounts Debit Credit Apr 1, 2018 Cash 618,000 Premium on bonds payable 18,000 Bonds payable 600,000 b. Payment of interest and amortization of premium on September 30, 2018. 1. If the market interest rate is 6.5 percent when Roland Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. 2. If the market interest rate is 8.5 percent when Roland Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. 3. Assume that the issue price of the bonds is $618,000. Journalize the following bonds payable transactions (round amounts to the nearest dollar): Issuance of the bonds on April 1, 2018 b. Payment of interest and amortization of premium on September 30, 2018 c. Accrual of interest and amortization of premium on December 31, 2018 d. Payment of interest and amortization of premium on March 31, 2019 a. Journal Entry Date Accounts Debit Credit Sep 30, 2018 Interest expense Premium on bonds payable Cash Print Done Accounts payable Bonds payable Cash Discount on bonds payable Interest expense Interest payable Premium on bonds payable