Company issued $80,000 of 10-year, 8% bonds payable on January 1, 2018. Lincoln Company pays interest each January 1 and July 1 and amortizes discount or premium by the straight-line amortization method. The company can issue its bonds payable under various conditions.

1. Journalize Lincoln Company's issuance of the bonds and first semiannual interest payment assuming the bonds were issued at face value. Explanations are not required.

2. Journalize Lincoln Company's issuance of the bonds and first semiannual interest payment assuming the bonds were issued at 93. Explanations are not required.

3. Journalize Lincoln Company's issuance of the bonds and first semiannual interest payment assuming the bonds were issued at 107. Explanations are not required.

4. Which bond price results in the most interest expense for Lincoln Company? Explain in detail.