Case 2 (25 points) During your regular annual audit of Karasuno Company for the year ended December 31 , 20x4, you obtain the following evidence and data relative to your examination of the bonds payable and related accounts. From your permanent file working papers: Client is authorized to issue 20,000 bonds with par value of P1 ,OOO each. Bonds are dated May 1, 20x1, and are due May 1, 2x11. Interest at 12% per annum is due semiannually every May 1 and November 1. The December 31, 20x3 balance of represents proceeds from issuance of 10,000 bonds on November 2, 20x2. 05/01/20x4 11/01/20x4 cv-120 cv-531 12%, 10- r Bonds P ble 12131 /20x3 Balance 07/01/20x4 CR Interest 600,000 07/01120x4 720,000 2,100,000 40,000 From supporting documents: CR Cash receipts entry for issuance of 2,000 bonds for a total of on July 1, 20x4. Trustee's remittance statement attached. Entry recorded Cash Bonds Payable Interest expense 40,000