rements I x 1. If the market interest rate is 5% when TCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. CU % wil 2. CU % will naliz dolla 24. 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 95. Journalize the following bond transactions: a. Issuance of the bonds on January 1, 2024. b. Payment of interest and amortization on June 30, 2024. C. Payment of interest and amortization on December 31, 2024. hem. hem. d. Retirement of the bond at maturity on December 31, 2043, assuming the last interest payment has already been recorded. first, Print Done On January 1, 2024, Teachers Credit Union (TCU) und P. 20-year bonds payable w Read the gurements ==>H ! 00000 0 +500) + Submit test maket, so invesions will pay more than face value to the at a premium, or at a court? Explain Requirement 1. If the market interest rate is when TCU issues its bonds, will the bonds be priced at face value, a premium, or a decount Exp The 7% bonds issued when the market interest rate is 5% will be priced at a premium They are attractive Requirement 2. If the market interest rate is 5% when TCU issues its bonds, will the bonds be priced at face value, The 7% bonds issued when the market interest rate is 9% will be priced at a discount They are Requirement 3. The issue price of the bonds is 95. Joumalize the bond transactions. (Assume bonds payable a journal entry Round your answers to the nearest whole dollar) a. Joumalize the issuance of the bonds on January 1, 2024 Date 2024 Accounts and Explanation Debit Credit amortized using the straightne amortization method. Record debts fest, then red stations Jan 11 Cash Discount on Bonds Payable Bonds Payable Issued bonds at a discount b. Journalize the payment of interest and amortization on June 30, 2024 380000 20000 400000 b. Journalize the payment of interest and amortization on June 30, 2024. Date Accounts and Explanation 2024 Jun. 30 Interest Expense Discount on Bonds Payable Cash Debit Credit 14500 500 14000 Paid semiannual interest and amortized discount. c. Journalize the payment of interest and amortization on December 31, 2024. Date Accounts and Explanation 2024 Dec. 31 Interest Expense Discount on Bonds Payable Cash Paid semiannual interest and amortized discount. Debit Credit 14500 500 14000 Retirement of the bond at maturity on December 31, 2043, assuming the last interest payment has already been recorded. Date Accounts and Explanation Debit Credit 2043 Dec. 31 Bonds Payable Cash Retired bonds payable at maturity. 400000 400000