During 2016 and 2017, Agatha Corp. completed the following transactions relating to its bond issue The corporation's fiscal year is the calendar year 2016 Jan. 1 Issued $240,000 of 10-year, 5 percent bonds for $234,000. The annual cash payment for Dec. 31 Recognized interest expense, including the straight-line amortization of the discount, and Dec. 31 Closed the interest expense account. interest is due on December 31 made the cash payment for interest. 2017 Dec. 31 Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest. Dec. 31 Closed the interest expense account. Required a-1. When the bonds were issued, was the market rate of interest more or less than the stated rate of interest? Less More a-2. If Agatha had sold the bonds at their face amount, what amount of cash would Agatha have received? Answer is complete and correct. S240,000 ash b. Prepare the general journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete No General Journal Credit Debit 234,000 6,000 Date January 01 2016 Cash Discount on bonds payable 240 December 31, 2016 12,000 Interest expense Loss on bond redemption 2,000 December 31, 2016 12,000 Cash Interest expense 12,000 Prepare the liabilities section of the balance sheet at December 31, 2016 and 2017. (Amounts to be deducted should be indicated with minus sign.) c. Answer is complete but not entirely correct. 2016 2017 Liabilities S 240 $ 240 Bonds payable Less: Discount on bonds payable 12,000 S 252,000 6,000 246,000 Carrying value of bonds payable