Lorance SpA issued 400,000, 6%, 5-year bonds on January 1, 2020. The effective-interest rate of 8% is applied to these bonds upon their issuance. Interest is payable annually on January 1. On July 1, 2022, Lorance SpA purchased its 400,000 bonds at 100. :[6%, 5)= 0.74726 ; (8%, 5)=0.68058 :[6%, 5)= 4.21236 ; (8%, 5)=3.99271 Required: Prepare the journal entries to record the following. (Round to the nearest euro.) 1. The issuance of the bonds on 2020/01/01.(5%) The accrual of interest and the discount amortization on 2020/12/31. (4%) 3. The purchase of bonds back on 2022/07/01 (6%) 4. Assumed L'Oreal Ltd. purchased all of the bonds Lorance SpA issued on Jan 1, 2020 and managed the bonds as a business model to holding these bonds to collect contractual cash flows and sell. Prepare the entry of the bonds investment for L'Oreal on Jan 1, 2020, and also the valuation entry on Dec 31, 2020 when the bonds are selling at 95. (5%) 2. Lorance SpA issued 400,000, 6%, 5-year bonds on January 1, 2020. The effective-interest rate of 8% is applied to these bonds upon their issuance. Interest is payable annually on January 1. On July 1, 2022, Lorance SpA purchased its 400,000 bonds at 100. :[6%, 5)= 0.74726 ; (8%, 5)=0.68058 :[6%, 5)= 4.21236 ; (8%, 5)=3.99271 Required: Prepare the journal entries to record the following. (Round to the nearest euro.) 1. The issuance of the bonds on 2020/01/01.(5%) The accrual of interest and the discount amortization on 2020/12/31. (4%) 3. The purchase of bonds back on 2022/07/01 (6%) 4. Assumed L'Oreal Ltd. purchased all of the bonds Lorance SpA issued on Jan 1, 2020 and managed the bonds as a business model to holding these bonds to collect contractual cash flows and sell. Prepare the entry of the bonds investment for L'Oreal on Jan 1, 2020, and also the valuation entry on Dec 31, 2020 when the bonds are selling at 95. (5%) 2