3: Long-term Liabilities (19.5 Marks) Micros Corporation issued $600,000 face value debentures on April 1, 2018. The bonds mature on March 31, 2028. The annual stated (coupon) rate is 5%, and interest must be paid annually on March 31. The annual market rate was 7% at the time of issuance. Micros Corporation's fiscal year ends on December 31. Micros Corporation uses the effective interest method, in accordance with IFRS requirements. Required (Round all numbers to the nearest dollar) 1. Calculate the cash proceeds from the bond issuance on April 1, 2018 and prepare the journal entry. (4 marks) 2. Prepare the journal entries to record the transaction on December 31, 2018 and on March 31, 2019. (6.5 marks) 3. Assume that Micros Corporation redeems 60% of the bonds for cash at 105% immediately after paying the interest on March 31, 2019. a. Prepare the journal entry for this transaction. (4.5 marks) b. Prepare the sections of the financial statements that are affected by this change on March 31, 2019 (after the redemption); i.e. Statement of Financial Position, Statement of Earnings, and Statement of Cash Flows. (Provide all necessary details in the presentation; the proper section title and the corresponding accounts.) (4.5 marks)