II. Ace Fabricating issued $500,000 of 4.5%, ten-year subordinated bonds on March 1, 2020 to yield 5%. Interest on the bonds is payable on September 1 and March 1 beginning on September 1, 2020. 1. Prepare the journal entries necessary to record the issuance of the bonds assuming bond issue costs totaled $10,000. 2. Briefly explain how the debt issue costs should be handled. 3. Assume the net proceeds from the bond issue were $486,906 and the effective rate on the bonds was 5.1%. All else remains the same. a. Prepare the journal entries to record the first interest payment on the bonds. b. Show what would be reported on the December 31, 2020 financial statements related to the bond