On January 1, 2016, Locker-Farrell signed a $200,000, 10-year, 13% note. The loan required Locker-Farrell to make annual payments on December 31 of $20,000 principal plus interest. Requirements Journalize the issuance of the note on January 1, 2016. Journalize the first note payment on December 31, 2016. Elie purchased a building with a market value of $335,000 and land with a market value of $55,000 on January 1, 2016. Elie paid $10,000 cash and signed a 15-year, 12% mortgage payable for the balance. Requirements Journalize the January 1, 2016, purchase. Journalize the first monthly payment of $4, 561 on January 31, 2016. Bond prices depend on the market rate of interest, stated rate of interest, and time. Determine whether the following bonds payable will be issued at face value, at a premium, or at a discount: a. The market interest rate is 8% Idaho issues bonds payable with a stated rate of 7.75%. Austin issued 9% bonds payable when the market interest rate was 8.25%. Cleveland's Cars issued 10% bonds when the market interest rate was 10%. Atlanta's Tourism issued bonds payable that pay the stated interest rate of 8.5% At issuance, the market interest rate was 10.25%