On February 28, 2018, Stingray Corp. issues 8%, 10-year bonds payable with a face value of $1,200,000. The bonds pay interest on February 28 and August 31. The company amortizes bond discount using the straight-line method. Read the requirements. Requirement 1. If the market interest rate is 7% when Stingray Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. The 8% bonds issued when the market interest rate is 7% will be priced at V. They are in this market, so investors will pay acquire them. Requirement 2. If the market interest rate is 9% when Stingray Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. The 8% bonds issued when the market interest rate is 9% will be priced at acquire them. V. They are in this market, so investors will pay Requirement 3. Assume that the issue price of the bonds is 99. Journalize the following bonds payable transactions. (Record debits first, then credits. Exclude explanations from journal entries.) a. Record the issuance of the bonds on February 28, 2018. Journal Entry Accounts Debit Credit 2018 Feb 28 b. Payment of interest and amortization of the bond discount on August 31, 2018. Journal Entry 2018 Accounts Debit Credit Aug 31 c. Accrual of interest and amortization of the bond discount on December 31, 2018 (fiscal year-end). Journal Entry Accounts Debit Credit 2018 Dec 31 d. Payment of interest and amortization of the bond discount on February 28, 2019. Journal Entry 2019 Accounts Debit Credit Feb 28 Requirement 4. Report interest payable and bonds payable as they would appear on Stingray Corp.'s balance sheet at December 31, 2018. Liabilities Less