Assume that on March 1, 2018, Back Trail Corp. issues 10 percent, 10 year bonds payable with a maturity value of $1,200,000. The bonds pay interest on February 28 and August 31, and Back Trail amortizes any premium or discount using the straight-line method. Back Trail's fiscal year end is December 31. Read the requirements Requirement 1. If the market interest rate is 8 percent when Back Trail Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain The 10 percent bonds issued when the market interest rate is 8 percent will be priced at They are in this market, so investors will pay to acquire them Requirement 2. If the market interest rate is 12.5 percent when Back Trail Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. The 10 percent bonds issued when the market interest rate is 12.5 percent will be priced at They are this market, so investors will pay to acquire them in Requirement 3. Assume that the issue price of the bonds is $1,224,000. Journalize each of the bonds payable transactions. (Do not round any he Question: 2 pts 7 of 7 (5 complete) This est PP Assume that on March 1, 2018, Back Trail Corp. issues 10 percent, 10-year bonds payable with a maturity value of $1,200,000. The bonds pay interest on February 28 and August 31, and Back Trail amortizes any premium or discount using the straight-line method. Back Trail's fiscal yea end is December 31. Read the requirements in this Requirement 1. If the market interest rate is 8 percent when Back Trail Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain The 10 percent bonds issued when the market interest rate is 8 percent will be priced at They are market, so investors will pay to acquire them Requirement 2. If the market Back Trail Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? E less than maturity value The 10 percent bonds issued maturity value 2.5 percent will be priced at They are this market, so investors will more than maturity value acquire them in Requirement 3. Assume that the issue price of the bonds is $1,224,000. Journalize each of the bonds payable transactions. (Do not found any Choose from any list or enter any number in the input fields and then continue to the next question ne that on March 1, 2018, Back Trail Corp. issues 10 percent, 10 year bonds payable with a maturity value of $1,200,000. The bonds pay est on February 28 and August 31, and Back Trail amortizes any premium or discount using the straight-line method. Back Trail's fiscal year December 31 the requirements mirement 1. If the market interest rate is 8 percent when Back Trail Corp. issues its bonds, will the bonds be priced at par, at a premium, or discount? Explain. O percent bonds issued when the market interest rate is 8 percent will be priced at They are in this t, so investors will pay to acquire them irement 2. If the market interest rate is 125 percent when Back Trail Corp. issues it a discount ced at par, at a um, or at a discount? Explain. a premium O percent bonds issued when the market interest rate is 12.5 percent will be priced par (maturity) value market, so investors will pay to acquire them by are in irement 3. Assume that the issue price of the bonds is $1,224,000. Journalize each of the bonds payable transactions. (Do not round any sume that on March 1, 2018, Back Trail Corp. issues 10 percent, 10-year bonds payable with a maturity value of $1,200,000. The bonds pay erest on February 28 and August 31, and Back Trail amortizes any premium or discount using the straight-line method. Back Trail's fiscal yea d is December 31 ad the requirements quirement 1. If the market interest rate is 8 percent when Back Trail Corp. issues its bonds, will the bonds be priced at par, at a premium, or a discount? Explain e 10 percent bonds issued when the market interest rate is 8 percent will be priced at They are in this arket, so investors will pay to acquire them. equirement 2. If the market interest rate is 12.5 percent when Back Trail Corp. issues its bonds, will the bonds be priced attractive emium, or at a discount? Explain. unattractive me 10 percent bonds issued when the market interest rate is 12.5 percent will be priced at They are in s market, so investors will pay to acquire them equirement 3. Assume that the issue price of the bonds is $1,224,000. Journalize each of the bonds payable transactions. (Do not round any a. Issuance of the bonds on March 1, 2018 Journal Entry Accounts Date Debit Credit Mar 1, 2018 b. Payment of interest and amortization of premium on August 31, 2018 Journal Entry Accounts Debit Credit Date Aug 31, 2018 c. Accrual of interest and amortization of premium on December 31, 2018 Journal Entry Accounts Date Debit Credit Dec 31, 2018 d. Payment of interest and amortization of premium on February 28, 2019. Journal Entry Date Accounts Debit Credit Feb 28, 2019