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22 points Problem 3 (22 Marks) On January 1, 2020, Darden Company issued 85.000,000 face value of 11 s.year bonds which provides the bondholders with

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22 points Problem 3 (22 Marks) On January 1, 2020, Darden Company issued 85.000,000 face value of 11 s.year bonds which provides the bondholders with a market rate affective tomat ihnen The bonds pay semiannual interest on June 30 atal December 31. The following Prevent value tables are provided for you Present Value Interest Factors for One Dollar Discounted atk Pererat for a periode Periods 4,04 4.596 5.09 6.095 6,895 9.045 10,056 11.05 1 0.96154 0.956 0.95238 0.94787 0.94340 0.98897 093458 0.909090 2 0.92456 0,91573 0.90703 0.89845 0.89000 0.88166 0.87346 0.32645 0.81162 3 0.88900 0,876300.16384 0.85161 0,83962 0827850.81630 0.75131 073119 4 0.85480 0.83856 0.82270 0.807220.79209 0.77732 0.76290 0.68301 0.65873 The bonds pay semiannual interest on 31. The following Present value tables are provided for you: Present Value Interest Factors for One Dollar Discounted at k Percent for n Periods Periods 4.096 4.596 5,0% 5.5% 6.09 6.5% 7.0% 10.0% 11.0% 1 0.96154 0.95694 0.95238 0.94787 0.94340 0.93897 0.93458 0.90909090090 2 0.92456 0.91573 0.90703 0.89843 0.89000 0.88166 0.87344 0.82645 0.81162 3 0.88900 0.87630 0.86384 0.85161 0.83962 0.82785 0.81610 0.75131 0.73119 4 0.85480 0.83856 0.82270 0.80722 0.79209 0.77732 0.76290 0.68301 0.65873 5 0.82193 0.80245 0.78353 0.76513 0.74726 0.72988 0.71299 0.62092 0.59345 6 0.79031 0.76790 0.74622 0.72525 0.70496 0.68533 0.66634 0.56447 0.53464 7 0.75992 0.73483 0.71068 0.68744 0.66506 0,64351 0.62275 0.51316 0.48166 8 0.73069 0.70319 0.67684 0.65160 0.62741 0.60423 0.58201 0.46651 0.43393 9 0.70259 0.67290 0.64461 0.61763 0.39190 0.56735 0.54393 0.42410 0.39092 10 0.67556 0.64393 0.61391 0.58543 0.55839 0.53273 0.50835 0.38354 0.35218 Present Value Interest Factors for a One Dollar Annuity Discounted at k Percent for a Periods 6.73274 6.59589 6.46321 6.3 75 5.97130 5.33493 5.14612 9 7.43333 7.26879 7.10782 6,9 10 6.51523 5.759025.53705 10 8.11090 7.91272 7.72173 7.5 383 7.02358 6.14457 5.88923 Instructions: a. Prepare the journal entry at the date of the bond issuance. Use the present value tables and round to the nearest dollar ( Marks) b. Prepare the journal entry for the payment of interest and the amortization of the premium on June 30, 2020. (5 Marks) c. Prepare the journal entry for the payment of interest and the amortization of the premium on December 31, 2020. (5 Marks) d. How would your answer differ if the effective-interest rate is 11%. (no calculations required) (6 Marks)

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