On January 1, 2024, Mechanics Credit Union (MCU) issued 6%, 20-year bonds payable with face value of $700,000. The bonds pay interest on June 30 and December 31. Read the requirements. Requirements Requirement 1. If the market interest rate is 5% when MCU issues its bonds, will the bonds be pric The 6% bonds issued when the market interest rate is 5% will be priced at a premium. They are Requirement 2. If the market interest rate is 7% when MCU issues its bonds, will the bonds be pric The 6% bonds issued when the market interest rate is 7% will be priced at a discount. They are Requirement 3. The issue price of the bonds is 93. Journalize the bond transactions. (Assume bor Select explanations on the last line of the journal entry. Round your answers to the nearest whole d a. Journalize the issuance of the bonds on January 1, 2024. 1. If the market interest rate is 5% when MCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. If the market interest rate is 7% when MCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. 2. 3. The issue price of the bonds is 93. Journalize the following bond transactions: Issuance of the bonds on January 1, 2024. a. b. Payment of interest and amortization on June 30, 2024. c. Payment of interest and amortization on December 31, 2024. d. Retirement of the bond at maturity on December 31, 2043, assuming the last interest navment has already been recorded Date 2024 Jan. 1 Cash Accounts and Explanation Discount on Bonds Payable Bonds Payable Issued bonds at a discount. Debit Credit 700,000 Print Done