1 On January 1, 20X1, Alberta Limited issued $1 million of 10 year 10% Bonds, which provides a yield of 12%. The company uses the effective interest rate method to amortize any bond premium or discount. The bonds pay annual interest on Jan 1 of each year. Assuming Dec 31 is the year end for Alberta Ltd. Required A) Prepare the journal entries Alberta should made for 20X1 and 20X2 B) What amount of interest is reported for 20X2? C) What is the total cost of borrowing over the life of the bond