On January 1, 2018, Engineers Credit Union (ECU) issued %, 20-year bonds payable with face value of $200,000. The bonds pay interest on June 30 and December 31. Read the requirements, Requirement 1. If the market Interest rate is 7% when ECU issues its bonds, will the bonds priced at face value, 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 Y to acquire them. Requirement 2. If the market interest rate is 9% when ECU issues its bonds, will the bonds priced at face value, at a premium, or at a discount? Explain. The 8% bonds issued when the market interest rate is 9% will be priced at V. They are in this market, so investors will pay to acquire them. Requirement 3. The issue price of the bonds is 95. Journalize the bond transactions. (Assume bonds payable are amortized using the straight-line amortization method. Record debits first, then credits. Select explanations on the last line of the Joumal entry. Round your answers to the nearest whole dollar) a. Journalize the issuance of the bonds on January 1, 2018. Date Accounts and Explanation Debit Credit 2018 Jan. 1 b. Journalize the payment of interest and amortization on June 30, 2018. Date Accounts and Explanation Debit Credit 2018 Jun. 30 On January 1, 2018, Engineers Credit Union (ECU) issued 8%, 20-year bonds payable with face value of $200,000. The bonds pay interest on June 30 and December 31. Read the requirements. Date Accounts and Explanation Debit Credit 2018 Jun. 30 Credit C. Journalize the payment of interest and amortization on December 31, 2018 Date Accounts and Explanation Debit 2018 Dec. 31 d. Retirement of the bond at maturity on December 31, 2037, assuming the last interest payment has already been recorded. Date Accounts and Explanation Debit Credit 2037 Dec. 31 On January 1, 2018, Engineers Credit Union (ECU) issued 8%. 20-year bonds payable with face value of $200,000. The bonds pay interest on June 30 and December 31. Read the requirements Date Accounts and Explanation Debit Credit 2018 Jun 30 Requirements priced C. Journalize the payment of interest and amortization on Dec Date Accounts and Explanation 2018 1. If the market interest rate is 7% when ECU issues its bonds, will the bonds face value, at a premium, or at a discount? Explain. 2 if the market interest rate is 9% when ECU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. 3. The issue price of the bonds is 95. Journalize the following bond transactions: 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 December 31, 2018. d. Retirement of the bond at maturity on December 31, 2037, assuming the last interest payment has already been recorded. Dec. 31 d. Retirement of the bond at maturity December 31, 2037 Print Done Date Accounts and Explanation 2037 Dec. 31