Hiscus, Inc., issued $350,000 of 10-year, 5 percent bonds payable on January 1. Hiscus, Inc., pays interest each January 1 and July 1 and amortizes any discount or premium by the straight-line method. Hiscus, Inc., can issue its bonds payable under various conditions: i (Click the icon to view the conditions.) Read the requirements Requirement 1. Joumalize Hiscus's issuance of the bonds and first semiannual interest payment for each situation. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) a. Record the issuance of the bonds payable at par value. Journal Entry Accounts Date Credit Debit 350000 Jan 1 Cash Bonds payable 350000 a. Record the payment of semiannual interest when the bonds are issued at par. Journal Entry Accounts Date Credit Debit 8750 Jul 1 Interest expense Cash 3750 b. Record the issuance at a price of $275,000 when the market rate was above 5 percent. Journal Entry Date Accounts Debit Credit Jan Cash Premium on bonds payable b. Record the payment of semiannual interest when the bonds are issued at a price of $275,000 and the market rate was above 5 percent. (Round to the nearest whole number.) Journal Entry Date Accounts Debit Credit Jul 1 Discount on bonds payable Accounts payable c. Record the issuance at a price of $430,000 when the market rate was below 5 percent. Journal Entry Date Accounts Debit Credit Screenshot Jan 1 Bonds payable c. Record the issuance at a price of $430,000 when the market rate was below 5 percent. Journal Entry Date Accounts Debit Credit Jan 1 Bonds payable Accounts payable c. Record the payment of semiannual interest when the bonds are issued at a price of $430,000 when the market rate was below 5 percent. (Round to the nearest whole number.) Journal Entry Date Accounts Debit Credit Jul 1 Interest expense Discount on bonds payable Requirement 2. Which condition results in the most interest expense for Hiscus, Inc.? Explain in detail. Screenshot The premium price of $430,000 results in the most interest expense. The reason for this is because Hiscus receives $430,000 and must pay back $350,000 More Info a. Issuance at par value b. Issuance at a price of $275,000 when the market rate was above 5 percent c. Issuance at a price of $430,000 when the market rate was below 5 percent Print Done