On February 28, 2020, KTrade Inc. issues 11%, 25-year bonds with a face value of $250,000. The bonds pay interest on February 28 and August 31. KTrade amortizes bonds by the straight-line method. 5 The 11% bonds issued when the market interest rate is 8-% will be priced at 8 They are in this market, so investors will pay to acquire them. Requirement 2. If the market interest rate is 14% when KTrade issues its bonds, will the bonds be priced at face value, a premium, or a discount? Explain. The 11% bonds issued when the market interest rate is 14% will be priced at They are in this market, so investors will pay Requirement 3. Assume that the issue price of the bonds is 95. Journalize the following bond transactions. (Record debits first, then credits. Explanations are not required.) a. Issuance of the bonds on February 28, 2020. Date Feb. 28 Journal Entry Accounts b. Payment of interest and amortization of the bonds on August 31, 2020. Date Aug. 31 Journal Entry Accounts Debit Credit Debit Credit c. Accrual of interest and amortization of the bonds on December 31, 2020. (Hold all decimals for interim calculations. Round your final answer to the nearest dollar.) Journal Entry to acquire them. On February 28, 2020, KTrade Inc. issues 11%, 25-year bonds with a face value of $250,000. The bonds pay interest on February 28 and August 31. KTrade amortizes bonds by the straight-line method. c. Accrual of interest and amortization of the bonds on December 31, 2020. (Hold all decimals for interim calculations. Round your final answer to the nearest dollar.) Date Dec. 31 Journal Entry Accounts Debit Credit d. Payment of interest and amortization of the bonds on February 28, 2021. (Hold all decimals for interim calculations. Round your final answer to the nearest dollar.) Date Feb. 28 Journal Entry Accounts Debit Credit Requirement 4. Report interest payable and bonds payable as they would appear on the KTrade balance sheet at December 31, 2020. (Hold all decimals for interim calculations. Round your final answer to the nearest dollar Liabilities