Exercise 10.10 (Algo) Accounting for Bonds Issued at a Discount: Issuance, Interest Payments, and Retirement (LO10-5, LO10-6) Mellilo Corporation issued $5.0 milition of 20 -year, 9.5 percent bonds on July 1, 2021, at 98 . Interest is due on June 30 and December 31 of each year, and all of the bonds in the issue mature on June 30, 2041. Mellito's fiscal year ends on December 31 . Prepare the following journal entries: a. July 1, 2021, to record the issuance of the bohds. b. December 31, 2021, to pay interest and amortize the bond discount. c. June 30,2041 , to pay interest, amortize the bond discount, and retire the bonds at maturity (make two separate entries). d. What is the effect of amortizing the bond discount upon (1) annual net income and (2) annual net cash flow from operating activities. (Ignore possible income tax effects) (If no entry is required for a transaction/event, select "No journal entry required" In the first account field. Enter your answers In dollars not In mililons.) Complete this question by entering your answers in the tabs below. 3. July 1, 2021, to record the iasuance of the bonds, b. December 31, 2021, to pay interest and amortize the bond discount. c. June 30,2041 , to pay interest, amortize tho bond diacount, and retire the bonds at maturity (make two sepa fote entries)