On January 1, 2017 Cotton Company issued $180,000 of 7%, 10-year bonds for $200200 to yield an effective annual rate of 9% (if your case is a premium) and of 5% (if your case is a discount). The effective-interest method of amortization is to be used. Interest is paid annually. The company prepares financial statements on December 31. Instructions: (a) Prepare a bond discount/premium amortization schedule which shows the amortization of discount/premium for the first three interest payment dates. (Round to the nearest dollar.) Bond Discount Amortization Effective-Interest Method-Annual Interest Payments 7% Bonds Issued at 9% or 5% Interest to be Paid Interest Expense Discount Amortization Unamortized Carrying Value Discount of Bonds Periods (Issue date) 1 2 3 (b) Prepare the journal entries that Cotton Company would make on January 1 and December 31, 2017 and January 1, 2018, related to the bond issue. Jan 1, 2017 Dec 1, 2017 Jan 1, 2018 (c) Calculate the cost of borrowings of this bond issue Show all your steps