3: On July 1, 2011, S. Posadas Chemical Company issued $3,000,000 face value, 10%, : 10-year bonds at $3,407,720. This price resulted in an 8% effective-interest rate on the bonds Posadas uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on each July 1 and January 1. Instructions (Round all computations to the nearest dollar.) (a) Prepare the journal entries to record the following transactions. (1) The issuance of the bonds on July 1, 2011. (2) The accrual of interest and the amortization of the premium on December 31, 2011. (3) The payment of interest and the amortization of the premium on July 1,2012, assuming no accrual of interest on June 30. (4) The accrual of interest and the amortization of the premium on December 31, 2012. (b) Show the proper presentation for the liability for bonds payable on the December 31, 2012, statement of financial position. (1o marks) Q 4: A parent company of a 60%-owned subsidiary uses the cost method. At the end of 2001, the parent made the following consol- idation entry, among others: The NCI entry: Common Stock Additional Paid-in Capital.. Retained Earnings, 1/1/01 NCI in Net Income. Dividends Declared NCI in Net Assets. 4,000 200,000 30,000 22,000 16,000 240,000 The parent also declared and paid dividends of $800,000 in 2001. uired What is the amount for each of the following items? a. The subsidiary's retained earnings balance at 12/31/01. b. The subsidiary's total equity at 12/31/01. c. The parent's year-end investment balance under the cost method. d. The parent's year-end investment balance under the equity method. e. The dividends declared by the subsidiary in 2001. f. The amount reported for dividends declared in the 2001 consolidated statement of re- tained earnings. (18 marks)