Issuance of a Bond at Face Value On January 1, 2016, Whitefeather Industries issued 600 $1,000 face value bonds. The bands have a(n) five-year life and pay interest at the rate of 8%. Interest is paid semiannually on July 1 and January 1. The market rate of interest on January 1 was 8%. Use the appropriate present value table: PV of $1 and PV of Annuity of $1 Required: 1. Calculate the issue price of the bonds and record the issuance of the bonds on January 1, 2016. Round your answer to the nearest $1,000. For example, $296,987 would be entered as $297,000. Record the issuance of the bonds on January 1, 2016. How does this entry affect the accounting equation? Indicate the effect on financial statement items by selecting "-" for decrease (or negative effect), "+" for increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement. Date Description 2016 Jan. 1 Journal Debit Credit Assets Balance Sheet Liabilities 2. Explain how the issue price would have been affected if the market rate of interest had been higher than 8%. Stockholders' Equity Revenues 3. Prepare the journal entry to record the payment of interest on July 1, 2016. How does this entry affect the accounting equation? Indicate the effect on financial statement items by selecting *-* for decrease (or negative effect), "+" for increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement. Date Description 2016 July 1 Journal Debit Credit Assets Balance Sheet Liabilities 4. Calculate the amount of interest accrued on December 31, 2016. If required, round your answer to the nearest dollar. Stockholders' Equity Revenues Income Statement Net Expenses Income Income Statement Net Expenses Income