L Accounting for Bonds Issued at a Discount: [7203] Merlin Company issued one bond on Dec. 1, Year 1, at a discount. The bond has a face value of $1,000. The bond's due date is Dec. 1, Year 3, and the stated [coupon) rate is 8%. The effective [market] rate on the bond is 12%. The bond will make interest payments semiannually on Dec. 1 and June 1 each year until maturity on Dec. 1, Year 3. The maturity date will be the date of the last interest payment. Bonds do not pay interest on their issuance date. Please ignore adjusting journal entries. Required: 1. Calculate the issue price of the bond on Dec. 1, Year 1. 2. Create the proper journal entry to be made on Dec. 1, Year 1 based on the issue price calculated in the previous step. 3. Record the proper journal entry to be made on June 1, Year 2, the date of the first interest payment. Ignore any adjusting journal entry [AJE) at Dec. 31, Year 1. 4. Record the proper journal entry to be made at the time of the second interest payment on Dec. 1, Year 2. 5. Ignoring any AJE on Dec. 31, Year 2, record the proper journal entry on June 1, Year 3, the date of the third interest payment