LaTanya Corporation is planning to issue bonds with a face value of $100,000 and a coupon rate of 8 percent. The bonds mature in seven years. Interest is paid annually on December 31. All of the bonds will be sold on January 1 of this year. a. Case A: Market interest rate (annual): 8 percent. b. Case B: Market interest rate (annual): 6 percent. c. Case C: Market interest rate (annual): 9 percent. Part 1: For cases B and C assume that the LaTanya Corporation uses the effective interest method to amortize the Bond Premium and Bond Discount account. Given this assumption (1) prepare journal entries to issue the bonds with and without Discount/Premium account; (2) prepare the journal entries to record payment of interest and interest expense on 12/31 assuming effective interest method of bond discount/premium amortization; and (3) Show how bonds payable will be reported on the 12/31 year 1 and year 2 balance sheets