On January 1, 2018, Educators Credit Union (ECU) issued 7%, 20-year bonds Payable with face value of $900,000. The bonds pay interest on June 30 and December 31.

Requirement 1. If the market interest rate is 6% when ECU issues its bonds, will the bonds be priced at face value, at a premuium or at a discount? Explain

The 7% bonds issued when the market interest rate is 6% will be priced at _______ (a. A discount b. A premium c. Face value). They are ______ (a. Attractive b. Unattractive) in this market, so investors will pay _______ (a. Face value b. Less than face value c. More than face value) to acquire them.

Requirement 2. If the market interest rate is 9% when ECU issued its bonds, will the bonds be priced at face value, at a premium or at a discounted rate. Explain

The 7% bonds issued when the market interest rate is 9% will be priced at _______(a. A discount b. A premium c. Face value). They are _____ (a. Attractive b. Unattractive ) in this market, so investors will pay _____ (a. Face value b. Less than face value c. More than face value) to acquire them.

Requirement 3. The issue price of the bond is 94. Journalize the bond transactions (Assume bonds Payable are amortized method. Record debits first the credits. Select and Explination onthe last line of the journal entry. Round your answer to the nearest whole dollar)

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Requirements I. If the market interest rate is 6% when ECU issues its bonds, will the bonds be priced at face 2. If the market interest rate is 9% when ECU issues its bonds, will the bonds be priced at face 3. The issue price of the bonds is 94. Journalize the following bond transactions: value, at a premium, or at a discount? Explain. value, at a premium, or at a discount?Explain. a. Issuance of the bonds on January 1, 2018 b. Payment of interest and amortization on June 30, 2018. c. Payment of interest and amortization on December 31, 2018 d. Retirement of the bond at maturity on December 31, 2037, assuming the last interest payment has already been recordecd a. Journalize the issuance of the bonds on January 1, 2018. Date Accounts and Explanation Debit Credis 2018 Jan. 1 b. Journalize the payment of interest and amortization on June 30, 2018. Date 2018 Jun. 30 Accounts and Explanation Debit Credit c. Journalize the payment of interest and amortization on December 31, 2018 Date 2018 Dec. 31 Accounts and Explanation Debit Credit d. Retirement of the bond at maturity on December 31, 2037, assuming the last interest payment has already been recorded Accounts and Explanation Debit Credit Date 2037 Dec. 31 Bonds Payable Cash Discount on Bonds Payable Interest Expense aliz Premium on Bonds Payable 2018 1, 20 lize Issued bonds at a discount. Issued bonds at face value. Issued bonds at a premium. 1 Paid semiannual interest and amortized discount. Paid semiannual interest and amortized premium. Retired bonds payable at maturity