Arnold Corporation is5ued $600,000 of 20 -year, 8 percent, callable bonds on January 1, Year 1 , with interest payable arinually on December 31. The bonds wore issued at thelr foce amount. The bonds are calable at 104 . The fiscal year of the corporation ends December 31 Required: e. Show the effect of the following events on the financial statements by recording the appropriate amounts in a horizontal statements model. 1. Issued the bonds on January 1. Year 1 . 2. Paid interest due to bondholders on December 31, Year 1 3. On January 1. Year 6 . Arnold Corporation called the bonds. Assume that all interim entries were correctly recorderd. b. Prepare journal entries for the three events listed in Requirement a. Complete this question by entering your answers in the tabs below. Show the effect of the following events on the financial statements by recording the appropriate amounts in a horizontal statements model. (in the Statement of Cach Flows column, indicate whether the item is an operating activity (OA) investing activity (W), or financing activity (FA). Leave blank to indicote that an Clement is not affected by the everit, Amounts to be deducted and cash outhows hould be indicated with o minus signi). 1. Issued the bonds on lanuary 1 , Year 1. 2. Paid intereit due to bondholders on December 31, Year 1. 3. On lanuary 1, Year 6 , Arnold Corporation called the bonds. Assume that all interim entries were correctly recorded. 2. Paid interest due to bondholders on December 31 , Year 1. 3. On January 1, Year 6. Arnoid Corporation called the bonds. Assume that all interim entries were correctly recorded. b. Prepare journal entries for the three events Iisted in Requirement a. Complete this question by entering your answers in the tabs below. Prepare journal entries for the three events listed in Requirement a. (If no entry is required for a transaction/event, select "p journal entry required" in the first account field.) Show the effect of the following events on the financial statements by recording the appropriate amwounts in a horizontal statements model. (tn the Statesineik of Cask flows column, indicate whether the item is an operating activity (OA), investing activity (1A), or financing activity (FA). Leave blank to ind.cate that an element is iof affected by the event. Amounts to be deducted and cash outllows should be indicated with a minus sign.) 1. Issued the bonds on January 1, Year 1. 2. Paid interest due to bondtholders on December 31, Year-1. 3. On January 1, Year 6, Amold Corporation called the bonds. Assume that all interim entries were correctly recorded