Please see attachment for requirements and info on bonds and interest.

On February 28, 2012, Marlin Corp. issues 8%, 10year bonds payable with a face value of $900,000. The bonds pay interest on February 28 and August 31. Marlin Corp. amortizes bonds by the straightline method. Requirement 1. If the market interest rate is 7% when Marlin Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain: The 8% bonds issued when the market interest rate is 7% will be priced at a. A discount b. A premium c. Maturity value They are a. Attractive b. Unattractive In this market, so investors will pay a. Less than maturity value b. Maturity value c. More than maturity value 2. If the market interest rate is 9% when Marlin Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. 3. Assume that the issue price of the bonds is 99. Journalize the following bonds payable transactions. a Issuance of the bonds on February 28, 2012. . b Payment of interest and amortization of the bonds on August 31, 2012. . c. Accrual of interest and amortization of the bonds on December 31, 2012, the year end. d Payment of interest and amortization of the bonds on February 28, 2013. . 4. Report interest payable and bonds payable as they would appear on the Marlin Corp. balance sheet at.December 31, 2012