MASTER BOND PROBLEM 3 Edible Insoles Corp, wants to expand their operations and decided to issue $2,000,000 of 3 year, 8.2% bonds, on 1/1/20. Interest is payable semiannually with payments on July 1 and December 31 of each year of the issue. The market rate for bonds of similar risk is 9%. INSTRUCTIONS: 1. Create the journal entry for the issuance of the bonds on 1/1/20. Create the necessary noncash T accounts from this entry and post into them as you make entries. 2. Create an amortization table for the bond issue. 3. Create the journal entries for the first three bond interest payments. 3.1 How will the bond be presented on Edible's 12/31/20 balance sheet? 3.2 How will Edible's income statement for the year ended 12/31/20 be affected by the bond? 4. What is the carrying value of the bonds immediately after the third payment? Show two different ways to arrive at that number given the information you should have created. After this step, you can stop posting to the T accounts, if you wish. 5. What is the journal entry on the maturity date 1/1/23 ? 6. What is the total cost of financing this borrowing