5 6.25 points elook Ask Pr Steferences Check my work During Year 1 and Year 2, Agatha Corporation completed the following transactions relating to its bond issue. The corporation's fiscal year is the calendar year Year 1 January 1 Issued $400,000 of 10-year, 6 percent bonds for $382,000. The annual cash payment for interest is due on December 31 December 31 Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest. December 31 Closed the interest expense account Year 2 December 31 Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest December 31 Closed the interest expense account Required a-1. When the bonds were issued, was the market rate of interest more or less than the stated rate of interest? a-2. If Agatha had sold the bonds at their face amount, what amount of cash would Agatha have received? b. Prepare the general journal entries for the above transactions c. Prepare the liabilities section of the balance sheet at December 31, Year 1 and Year 2 5 6.25 points eBook Required a-1-When the bonds were issued, was the market rate of interest more or less than the stated rate of interest? a-2. If Agatha had sold the bonds at their face amount, what amount of cash would Agatha have received? b. Prepare the general journal entries for the above transactions. c. Prepare the liabilities section of the balance sheet at December 31, Year 1 and Year 2 d. Determine the amount of interest expense that will be reported on the income statements for Year 1 and Year 2 e. Determine the amount of interest that will be paid in cash to the bondholders in Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Ask Print Req A1 Req A2 Req B Req C Req D Req E References When the bonds were issued, was the market rate of interest more or less than the stated rate of interest? When the bonds were issued, was the market rate of interest more or less than the stated rate of interest? Check my If Agatha had sold the bonds at their face amount, what amount of cash would Agatha have received? Amount of cash < Req A1 Req> 5 Issued $400,000 of 10-year, 6 percent bonds for $382,000. The annual cash payment for interest is due on December 31. 6.25 points eBook Ask Print References Note: Enter debits before credits Date January, Year 1 General Journal Debit Credit Record entry Clear entry View general journal 5 -Req A1 Req AZ Req B Req C Req D Req E 6.25 points Prepare the liabilities section of the balance sheet at December 31, Year 1 and Year 2. (Amounts to be deducted should be indicated with minus sign.) Year 1 Year 2 Liabilities eflook Ask Carrying value of bonds payable $ 0 S 0 Print 5 6.25 points ped this question in the previous attempt Req A1 Req A2 Req B Reg C Req D Req E Determine the amount of interest expense that will be reported on the income statements for Year 1 and Year 2. Interest Expense Year 1 eBook Year 2 Ask Print References < ReqC ReqE > C 5 6.25 points Req A1 Req A2 Req B Req C Req D Req E Determine the amount of interest that will be paid in cash to the bondholders in Year 1 and Year 2. Interest Paid Year 11 eBook Year 2 Asi Print References Check