CP10-6 (Algo) (Supplement 10A) Recording Bond Issuance and Interest Payments (Straight-Line Amortization) (LO 10-S1) Southwest Corporation issued bonds with the following details: Face value $520,000 Interest: 9 percent per year payable each December 31 Terms: Bonds dated January 1, 2021, due five years from that date The annual accounting period ends December 31. The bonds were issued at 104 on January 1, 2021, when the market interest rate was 8 percent. Assume the company uses straight-line amortization and adjusts for any rounding errors when recording interest expense in the final year Required: 1. Compute the cash received from the bond issuance in dollars. TIP: The issue price typically is quoted at a percentage of face value 2. & 3. Prepare the journal entry to record the issuance of the bonds and the payment of interest on December 31, 2021 and 2022 4-a. How much Interest expense would be reported on the income statements for 2021 and 20227 4-5. Compute the bond value which should be reported on the balance sheets ot December 31, 2021 and 2022 Complete this question by entering your answers in the tabs below. Reg! Reg 2 and 3 Reg* Req 40 Prepare the journal entry to record the issuance of the bonds and the payment of interest on December 31, 2021 and 2022. (if no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet Record the issuance of bonds with a face value of $520,000 at 104