On January 1,2024, Teachers credit union (TCU) issued 8%, 20-year bonds payable with face value of $650,000. The bonds pay interest on June 30 and December 31.

- Requirements X Cancel hem. Stil 1. If the market interest rate is 6% when TCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. 2. If the market interest rate is 9% when TCU 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 93. Journalize the following bond transactions: a. Issuance of the bonds on January 1, 2024. b. Payment of interest and amortization on June 30, 2024 Payment of interest and amortization on December 31, 2024. d. Retirement of the bond at maturity on December 31, 2043, assuming the last interest payment has already been recorded. hem. zd ar first, the C. Print Done On January 1, 2004. Teachers Credit Union (TCU) snud %, 20-year bonds payable with face value of $850.000. The bonds puy interest on June 30 and December 31 Read the guitement Requirement, the market interest rate is 0% when TCU issues to bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. The 8% bonde issued when the market interest rate is 6% will be priced at a premium They are attractive in this market, so investors will pay more than face value to acquire them Requirement 2. It me market interest rate is when TCU svests bonds, we the bonds be priced at face value, at a premium, or at a discount? Explain The bondested when the market interest rates will be priced at a discount They are rattractive in the market to investors will pay less than face value to acquire them Requirements. The son price of the bonds in 93. Joumalize the bond transactions. Anume bonds payable wo torized using the straight in amortion method. Record cabins fest, then credit Bulut pluran Jumal entry Round your answers to the whole dollar a. Journal hance of the bonds on January 1, 2024 Date Accounts and Explanation Dobit 2004 Jun1 Credit t. Joumalize the payment of interest and amortization on June 30, 2024 Requirement 3. The issue price of the bonds is 93. Journalize the bond transactions. (Assume bonds payable are amortized using the straight-line amortization methe journal entry, Round your answers to the nearest whole dollar) a. Journalize the issuance of the bonds on January 1, 2024. Date Accounts and Explanation Debit Credit 2024 Jan. 1 b. Journalize the payment of interest and amortization on June 30, 2024 Date Accounts and Explanation Debit Credit 2024 Jun 30 G. Journalize the payment of interest and amortization on December 31, 2024 Dato Accounts and Explanation Debit Credit 2024 Dec 31 Bonds Payable Cash d. Retirem Discount on Bonds Payable ig the last interest payment has already been recorded Debit Credit Date 2043 Dec 31 Interest Expense Premium on Bonds Payable c. Joumalize the payment of interest and amortization on December 31, 2024 Date Accounts and Explanation Debit Credit 2024 Dec 31 Issued bonds at a discount. Interest payment has already been recorded. d. Retirem Issued bonds at a premium Issued bonds at face value. 2043 Paid semiannual interest and amortized discount. Date Credit Dec 31 Paid semiannual interest and amortized premium. Retired bonds payable at maturity. G. Joumalize the payment of interest and amortization on December 31, 2024 Date Accounts and Explanation Debit Credit 2024 Dec. 31 d. Retirement of the bond at maturity on December 31, 2043, assuming the last interest payment has already been recorded Date Account and Explanation Debit Credit 2043 Dec 31