Take me to the text A company is issuing $330,000 worth of 5-year bonds on August 14, 2020, bearing an interest rate of 4%, payable annually. Assume that the current market rate of interest is 7%. a) Will the bonds be issued at a discount or at a premium? b) Calculate the value of the resulting discount or premium. c) Record the journal entry to reflect the sale of bonds and the appropriate discount or premium. Note that the present value factor for the principal is 0.7130 (7%, 5-years) and that the present value factor for the recurring interest payment is 4.1002 (7%, 5-years). Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. Enter the debit accounts in alphabetical order as applicable. Enter all credit accounts in alphabetical order as applicable. The bonds are issued at a: Discount Discount or premium amount: $ 81179.34 Date Account Title and Explanation Debit Credit Aug 14 Cash 248821 Discount on Bonds Payable 39820 X Bonds Payable 330000 Issue of bonds at discount or premium A company issued $1,320,000 worth of 15-year bonds with a 5% interest rate. Interest is to be paid annually. The bond issue date is January 1, 2020 and the company has a year-end of December 31. Calculate the bond issue price under each market interest rate. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. For bond calculations, use the PV tables at the end of Chapter 7 textbook or use a financial calculator. Market Interest Rate Bond Price 4% $ 1466783 X 5% $ 1320000 6% 1191841