which method is best for financing and why ???

A five-year loan from the Niagara Credit Union for $210,000. The interest rate on the loan will be 6% with annual payments each December 31" consisting of an equal amount of principal (ie. $42,000 each year) plus applicable interest expense. Bob would like to know what the journal entry is for the initial receipt of the loan as well as the first payment on December 31" of the current year. Financing Option #2 - Bond Issue RFC will issue bonds on January 1st of the current year with a face value of $210,000, a coupon rate of 7% with interest paid semi-annually (July 1 and January 1) and a maturity of 10 years. Bonds with a similar risk profile currently have a yield of 8% (ie the market rate of interest). Bob would like to know what the journal entry is for the issue of the bonds as well as the journal entries for the first interest payment and the first year-end adjusting entry. If this option is chosen, RFC will use the effective interest rate method for accounting for the bonds. Financing Option #3 - Preferred Shares RFC will issue 12,000 non-cumulative, convertible, preferred shares at $17.50 per share to friends and family. Each share will have a dividend right of $0,40 per share and is convertible into one common share after five years have passed (ie, not convertible until five years from the date of issue). Prior to this financing, RFC's share capital consisted of: Robert and his family 55,000 common shares Lawrence Walters (Bob's brother) 1,800 cumulative preferred shares $0.30 dividend right All the current shares were issued when the company was formed five years. No dividends were paid for the prior two years, but were paid in full each year before that. Bob is expecting RFC to declare a $9,000 dividend on December 1" of the current year to be paid January 15th next year