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On February 28, 2016, Stingray Corp. issues 8%, 20-year bonds payable with a face value of $ 600,000. The bonds pay interest on February 28 and August 31. Stingray Corp. amortizes bond discount by the straight-line method. Read the requirements: Data: 1. If the market interest rate is 7% when Stingray Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. 2. If the market interest rate is 9% when Stingray Corp. issues its bonds, will the bonds be at par, at a premium, or at a discount? Explain. 3. Assume that the issue price of the bonds is 94. Journalize the following bonds payable transactions. a. Issuance of the bonds on February 28, 2016. b. Payment of interest and amortization of the bond discount on August 31, 2016, the year-end. c. Accrual of interest and amortization of the bond discount on December 31, 2016, the year-end. d. Payment of interest and amortization of the bond discount on February 28, 2017. 4. Report interest payable and bonds payable as they would appear on the Stingray Corp. balance sheet at December 31, 2016.

Please schedule a written lesson with detailed explanations to the solutions with either Prakhar D. or Trystenne S., whichever (whoever) is available and able to help the most.

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