Problem 1 (20 Points). Please prepare journal entries for the following bonds. Toros Company sells 800,000 of 12% stated interest rate bonds on June 1, 2021. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2026. The market interest rate was 10%. Instructions (Round to the nearest dollar.) 1) Calculate present value of the bonds. Present value factors as follows: A. Ordinary annuity, 10%, 5 periods: 3.79079 B. Ordinary annuity, 5%, 10 periods: 7.72173 C. Annuity due, 10%, periods: 4.16986 D. Annuity due, 5% periods: 8.10782 E. Single sum, 10%, 5 periods: 0.62092 F. Single sum, 5%, 10 periods: 0.61391 2) Prepare an amortization schedule first two years (from June 1, 2021 to June 1, 2023) 3) Make journal entries for the following date. June 1, 2021 December 1, 2021 December 31, 2021 June 1, 2022 December 1, 2022 4) On October 1, 2022, Toros buys back 400,000 worth of bonds for 415,000 (includes accrued interest). Calculate the gain or loss of the redemption and make journal entries on October 1, 2022