Assume that on April 1, 2018, Washington Corp. issues 6 percent, 10 year bonds payable with a maturity value of $400,000. The bonds pay interest on March 31 and September 30, and Washington amortizes any premium or discount using the straight-line method. Washington's fiscal year end is December 31. Read the requirements Requirement 1. if the market interest rate is 4 percent when Washington Corp. is its bonds, wil the bonds be priced at par, at a premium, or at a discount? Explain The 6 percent bonds issued when the market interest rate is 4 percent will be prodat premium They are attractive in this market, so Investors will pay more than maturity value to acquire them Requirement 2. the market interest rate is 7.6 percent whers Washington Corp. issues ts bonds, wil the borde be priced at par, at a premium, or at a discount? Explain The 6 percent bonds issued when the market interest rate is 7.5 percent will be prioed at a discount They are unattractive in this market, so Requirement 3. Assume that the issue price of the bonds is $412,000. Joumalize each of the bonds payable transactions. (Do not found any intermediary computations, but the round l amounts you thout into the journal entry tables to the nearest whole dolar. Record debits first, then credits. Exclude explanations from any oumas) a. Issuance of the bonds on April 1, 2018 Journal Entry Accounts Date Det Credit - the Read the parements Payment of interest and amortization of premium on September 30, 2018 Journal Entry Date Accounts Debi Sep 30, 2016 Credit Assume that on Apr 1, 2018, Westington Corp. issues percent, 10-year bonds payable with a maturity value of $400,000. The bonds pay interest on March 31 and Serember 30, and Washington amonize any premium or discounting the straight-line method. Washington's focal year and in December 31 Read theme Accrual of interest and emotion of premium on December 31, 2018 Journal Entry Date Accounts Debit Credil Dec 31, 2018 to 1. 2018, Washington Corpus percent, 10-year bonde payable with a maturity value of $400.000. The bond payron March 1 and ember, and Washington amor 31 in method Wifecal year and is December O words O words A 30 Edit Insert Format Untitled - Edited 125% Zoom Chart Table Text Shape Media Commer View Add Page Insert wy Accounts De Date Credit Read the requirements b. Payment of interest and amortization of premium on September 30, 2018 Journal Entry Date Accounts Debit Sep 30, 2018 Credit Assume that on Apr 1, 2018, Washington Corp. 6 percent, 10-year bonds payable with a maturity value of $400,000. The bonds pay interest on March 31 and September 30, and Washington amortizes any premium or discount using the straight line method Washington's fiscal year and is December 31. Read the regime G.Acorus of interest and amortization of premium on December 31, 2018 Journal Entry Accounts Date Debt Credit Dec 31, 2018 Assume that on April 1, 2016. Washington Corpus 6 percent, 10 year bonds payable with a maturity value of $400,000. The bonds pay interest on March 31 and September 30, and Washington amortires any premium or discount using the straigh-line method Washington's cal year and is Decembe 31. Read the revirements d. Payment of interest and amortization of premium on March 31, 2019 Journal Entry Date Account Debit Cred Mar 31, 2019 Choose from a list of a number in the noted and then continue to the next cuestion O words 30 A