3 -- Bonds (18 points) Green Grass Inc. issued five year bonds with a par value of $100,000 with an 8% annual coupon rate on January 2, 2020. The bonds pay interest each July and January 1st. The market rate at the date of issue for similar bonds was 10% per annum. Answer the following questions related to this transaction. The company uses the effective interest method to record interest expense. Present Value of $1, 5 periods Present Value of $1, 10 periods Present Value of Annuity, 5 periods 4% 5% 8% 10% .8219 7835 .6806 .6209 .6756 6139 .4632 3855 4.452 4.329 3.993 3.790 8.111 7.721 6.710 6.145 Present Value of Annuity, 10 periods a. Calculate the present value of the bonds at the issue date. b. Prepare the journal entry for the issuance of the bonds on January 2, 2020. C. Prepare the journal entry(ies) for July 1, 2020. Problem 3 Bonds (continued) - d. Prepare any necessary adjusting entries related to the bonds as of December 31, 2020. e. Assume after paying interest on January 1, 2021, Green Grass Inc. retired $40,000 of the bonds at 103. Prepare the journal entry for the retirement of the bonds. f. How is this transaction in (e) above reported in the income statement of Green Grass Inc