5. Gonzalez Corporation was authorized to issue $100,000 of 8%, four-year bonds, dated January 1, 2017. All the bonds were sold on that date when the effective interest rate was 7%. Interest is payable on June 30 and December 31 each year. The company follows a policy of amortizing premium or discount using the effective-interest method. The company closes its books on December 31 of each year. Required: (1) Calculate the issuance price of the bonds. (2) Prepare journal entries at the following dates: (a) January 1, 2017 (b) December 31, 2017 (c) December 31, 2018 (d) December 31, 2020 (3) What was the carrying amount of this bond issue on the balance sheet of the company at December 31, 2018? r=3.5% r=4% Present value of $1 N=4 N=8 0.8714 0.7594 0.8548 0.7307 0.7629 0.5802 0.7350 0.5403 Present value of an annuity of $1 N=4 N=8 3.6731 6.8740 3.6299 6.7327 3.3872 5.9713 3.3121 5.7466 r=7% r=8%