On January 1, a business issues $700,000 face value, 5 year, 8% contract rate bonds dated January 1. Prepare any necessary journal entries on January 1 to issue the bonds under the following independent circumstances. (Please be sure to show your work.) A. The bonds are sold at 100. B. The bonds are sold at 82.5. C. The bonds are sold at 109.5. 2. On January 1, a business issues $200,000 face value, 10 year, 8% contract rate bonds dated January 1. Interest is payable annually each December 31. The bonds were issued at a discount of $25,000. Using the STRAIGHT-LINE METHOD, prepare the necessary journal entries to record total interest expense for the FIRST interest period. On January 1, a business issues $200,000 face value, 10 year, 8% contract rate bonds dated January 1. Interest is payable annually each December 31. The bonds were issued at a premium of $17,000. Using the STRAIGHT-LINE METHOD, prepare the necessary journal entries to record total interest expense for the FIRST interest period.