Priora Corporation issued $600,000 of 10-year, 3% bonds at 96. Interest is payable semi-annually on September 1 and March 1. Prioras fiscal year-end is February 28.

E153 On September 1, 2013, Priora Corporation issued $600,000 of 10-year, 3% bonds at 96. Interest is payable semi-annually on September 1 and March 1. Prioras fiscal year-end is February 28.Instructions(a) Is the market rate of interest higher or lower than 3%? Explain.(b) Record the issue of the bonds on September 1, 2013. (c) Record the accrual of interest on February 28, 2014, assuming the semi-annual amortizationamount for this Interest period is $1,014. (d) Identifywhatamounts, if any, would be reported as a current liability and non-current liability withrespect to the bonds and bond interest accounts on February 28, 2014. (e) Record the payment of interest on March 1, 2014.