18. On November 1, 2018, Magenta Marketing issued 6% bonds with a face amount of $150,000. The bonds sold for $138,000 and mature on August 31, 2028 (10 years). Interest is paid semiannually on March 30 and September 30. Magenta uses the straight-line method and its fiscal year ends December 31 it Prepare the journal entry on December 31, 2018 for interest expense, a date when no cash is paid. indi- Is on Account Date Credit Debit PR Ind 1760 fxp Disc 2O0 19. Otto Company contracted with another company to have a machine custom made. Otto paid for the machine by issuing a $90,000, three-year note that specified 3 % interest, payable annually on December 31 of each year. The cash market price of the machine was unknown. It was determined by comparison with similar transactions that 8 % was a reasonable rate of interest. Prepare the journal entry for the purchase of the machine. Credit Debit PR Account Date 8403 FEauiprent DS 11597 20. The balance sheet of Qi Electronics Corporation as of December 31, 2017, included 11 % bonds having a face amount of $300,000. The bonds had been issued in 2010 and had a remaining discount of $10.000 at December 31, 2017. On January 1, 2018, Qi Electronics called the bonds before their scheduled maturity at the call price of 102. Prepare the journal entry to record the redemption of the bonds at January 1, 2018, Debit PR Credit Account 3oo.000 Na000 Date BIP Loss on bems Disc cash 10/000 300,000 on Moters in 2018