De Company Ltd. has a number of commercial greenhouse operations in British Columbia's province. To finance the additional real estate necessary to meet the increasing demand for the company's products, the company decided to issue bonds. On Jan 1, it issues 20-year semi-annual bonds with a face value of $ 100 million.. The contract rate on the bonds was 6% and the bonds were issued at 94 448 to yield 6.5% Interest payments are to be made each June 30 and December 31. Question: 1) Were the bonds issues at par, a discount or a premium? How do you know? Please explain. 2) Determine the proceeds on insurance of the bonds and prepare the journal entry to record the bonds' sale on Jan 1st. 3) Provide the journal entries to record the first two interest payments. 4) What amount will be reported for the bond liability on the company's statement of financial position on December 31 of the first year? 1