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Requirements or at a discount? Explain. 1. If the market imlerest rate is 8.5 percent when Oregon Corp. issues its bonds, wit the bonds be

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Requirements or at a discount? Explain. 1. If the market imlerest rate is 8.5 percent when Oregon Corp. issues its bonds, wit the bonds be priced at par, at a premium, or at a discount? Explain. 2. Ht the market interest rate is 12 percent when Oregon Corp. issues its bonds, will the bonds be priced at pes, at a premium, or at a discount? Explain. 3. Assume that the issue price of the bonds is $303,000. Joumalize the following bonds paryable fransactions (round amounts to the nearest dollar) a. Issuance of the bends on February 1,2018 b. Payment of interest and amortization of premium on July 31,2018 c. Accrual of interest and amortuation of premium on December 31, 2018 d. Payment of interest and amortzation of premium on January 31, 2019 Assume that on February 1, 2018, Oregon Corp, issues 9 persent, 10 year bonds payablo with a maturity value of 5300,000 . The bends poy interest on January 31 and July 31 , and Cregon anortives any premiun or diveouet using the straght Ine method, Oregoris fiscal yeat end is Dencenber J1. Resd the resumects Requirement 1. If the market interest rabe is 8.5 percent when Oropon Coep issues its bonds, wat the bonds be priced at pair, at o premium, or at a discounr? Explain The 9 percent bonds istubd when the muket inierest rate is 8.5 percent wat be prised at Theyare in the market, so imostors witt poy to acouite them. The 9 sercent bonds issued aten the market irterest rate is 12 percent will be poiced of They are in thes makec so nusetors wir paly ba sceure them. A. Issuance of the bonds on Fetruary 1, 2018 Requirements 1. If the market interest rate is 8.5 percent when Oregon Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. 2. If the market interest rate is 12 percent when Oregon Corp. Issues its bonds, will the bonds be priced at par, at a premium, of at a discount? Explain. 3. Assume that the issue price of the bonds is $303,000. Journalize the following bonds payable transactions (round amounts to the nearest dollar): a. Issuance of the bonds on February 1,2018 b. Payment of interest and amonization of premium on July 31, 2018 c. Accrual of interest and amortzation of premium on December 31,2018 d. Poyment of interest and arnotization of premium on January 31, 2019

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