Scofield Company Limited is considering raising additional funds. Scofield plans to raise the money by issuing $400,000 of 4%, 5 year debentures on 1 March 2020. The debentures pay interest yearly on 1 March and 1 September. On 1 March 2020, the market rate of interest required on similar debentures by investors is 6%.

1. Will Scofields debentures be issued at par, a premium or a discount?
2. Calculate and record the cash received on the debenture issue date.
3. Journalise the first interest payment on 1 September and amortise the premium or discount using the straight line interest method.
4. Journalise the entry required, if any, on 31 December related to the debentures.