Assume that on February 1, 2018, Sierra Corp. issues 7 percent, 10-year bonds payable with a maturity value of $500,000. The bonds pay interest on January 31 and July 31, and Sierra amortizes any premium or discount using the straight-line method. Sierra's fiscal year end is December 31. Read the requirements Test Requirement 3. Assume that the issue price of the bonds is $525,000. Journalize each of the bonds payable transactions. (Do not found any intermediary computations, but then round all amounts you input into the journal entry tables to the nearest whole dollar. Record debits first, then credits. Exclude explanations from any journal entries.) a. Issuance of the bonds on February 1, 2018 Journal Entry Date Accounts Debit Credit Feb 1, 2018 Choose from any list or enter any number in the input fields and then click Check Answer 3 parts Clear All Check Answer remaining DO Requirements - Xu sary orti Ist on me nroy prmer de e -dsd 1. If the market interest rate is 6.5 percent when Sierra 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 percent when Sierra 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 $525,000. Journalize the following bonds payable transactions (round amounts to the nearest dollar): a. Issuance of the bonds on February 1, 2018 b. Payment of interest and amortization of premium on July 31, 2018 c. Accrual of interest and amortization of premium on December 31, 2018 d. Payment of interest and amortization of premium on January 31, 2019 Print [ Done Print Done