of $37 million on January 1, 2018. The bonds mature in 2028 Digital Telephony issued 10% bonds, dated January 1, with a face amount (10 years) For bonds of similar risk andmaturity the Digital recorded the issue as follows: (EY of.S1 PV of S1. EVA of S1, PVA of S!. EVAD of $1 and PVAD of S) (Use appropriate factorfs) market yield is 12%. Interest is paid semiannually on June 30 and December 31 from the tables provided.): General Journal Debit Credit Cash Discount on bonds 32,755,952 4,244,048 Bonds payable 37,000,000 also leased switching equipment to Midsouth Communications, Inc., on September 30, 2018. Digital purchased the equipment from MDS Corp, at a cost of $ 11 million. The five-year lease agreement calls for Midsouth to make payable each September 30. December 31, March 31, and June 30, with the frst paymen interest rate is 12%. on September 30, 2018. Digital's implicit Required: 1. What would be the amount(s) related to the bonds that Digital would reportin its statement of cash flows for the year ended December 31, 2018, under the direct method? 2. What would be the amounts related to the lease that Midsouth would r December 31, 2018, under the direct method? 3. What would be the amounts related to the lease that Digital would report in its statement of cash flows for December 31, 2018, under the direct method? epoit in its stotement of cash flows for the year ended 4. Assume MOS manufactured the equipment at a cost of $10 million and that Midsouth leased the equipment directly from Mos What and that Midsouth leased the equipment directly from MDS. What would be the amounts related to the lease that MDS would report in its statement of cash flows for the year ended December 31 2018? Complete this question by entering your answers in the tabs below Prev 2 of 3 Next of $37 million on January 1, 2018. The bonds mature in 2028 Digital Telephony issued 10% bonds, dated January 1, with a face amount (10 years) For bonds of similar risk andmaturity the Digital recorded the issue as follows: (EY of.S1 PV of S1. EVA of S1, PVA of S!. EVAD of $1 and PVAD of S) (Use appropriate factorfs) market yield is 12%. Interest is paid semiannually on June 30 and December 31 from the tables provided.): General Journal Debit Credit Cash Discount on bonds 32,755,952 4,244,048 Bonds payable 37,000,000 also leased switching equipment to Midsouth Communications, Inc., on September 30, 2018. Digital purchased the equipment from MDS Corp, at a cost of $ 11 million. The five-year lease agreement calls for Midsouth to make payable each September 30. December 31, March 31, and June 30, with the frst paymen interest rate is 12%. on September 30, 2018. Digital's implicit Required: 1. What would be the amount(s) related to the bonds that Digital would reportin its statement of cash flows for the year ended December 31, 2018, under the direct method? 2. What would be the amounts related to the lease that Midsouth would r December 31, 2018, under the direct method? 3. What would be the amounts related to the lease that Digital would report in its statement of cash flows for December 31, 2018, under the direct method? epoit in its stotement of cash flows for the year ended 4. Assume MOS manufactured the equipment at a cost of $10 million and that Midsouth leased the equipment directly from Mos What and that Midsouth leased the equipment directly from MDS. What would be the amounts related to the lease that MDS would report in its statement of cash flows for the year ended December 31 2018? Complete this question by entering your answers in the tabs below Prev 2 of 3 Next