Requirement 1) a discount, a premium or par (maturity) value.

1b) attractive or unattractive

1c) less than maturity value, maturity value or more than maturity value

Requirement 2-

2) a discount, a premium or par (maturity) value.

2b) attractive or unattractive

2c) less than maturity value, maturity value or more than maturity value

Assume that on February 1, 2018, Atlantic Corp. issues 8 percent, 10-year bonds payable with a maturity value of $900,000. The bonds pay interest on January 31 and July 31, and Atlantic amortizes any premium or discount using the straight-line method. Atlantic's fiscal year end is December 31. Read the requirements. Requirement 1. If the market interest rate is 6 percent when Atlantic Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. in this market, so investors The 8 percent bonds issued when the market interest rate is 6 percent will be priced at They are will pay V to acquire them. Requirement 2. If the market interest rate is 10 percent when Atlantic Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. in this market, so investors The 8 percent bonds issued when the market interest rate is 10 percent will be priced at They are will pay to acquire them. Requirement 3. Assume that the issue price of the bonds is $945,000. Journalize each of the bonds payable transactions. (Do not round any intermediary computations, but then round all amounts you input into the journal entry tables to the nearest whole dollar. Record debits first, then credits. Exclude explanations from any journal entries.) a. Issuance of the bonds on February 1, 2018. Journal Entry Date Accounts Debit Credit Feb 1, 2018 b. Payment of interest and amortization of premium on July 31, 2018. Journal Entry Date Accounts Debit Credit Jul 31, 2018 c. Accrual of interest and amortization of premium on December 31, 2018. Journal Entry Date Accounts Debit Credit Dec 31, 2018 d. Payment of interest and amortization of premium on January 31, 2019. Journal Entry Date Accounts Debit Credit Jan 31, 2019