Problem 1 Logan Corporation issued $600,000 of 8% bonds on October 1, 2018, due on October 1, 2023. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective annual interest. Logan Corporation closes its books annually on December 31. a. Prepare the journal entry to record the issuance of the bonds. b. Prepare ALL journal entries which Logan would make with regards to this bond issue through April 1, 2020. (show the dates for all of the entries required). Use the effective interest rate method in determining any amortization. c. If the straight line method of amortization had been used how much is the interest expense for the six months ending October 1, 2020. d. Under the straight line method, what is the carrying value of the bonds as of April 1, 2020? (Highlight the amount on your printed schedule) e. How much is the total interest expense over the life of the bond if the effective interest method is used for amortization? f. How much is the total interest expense over the life of the bond if the straight line method is used for amortization? g. If $200,000 of the bonds were retired on April 1, 2020 by purchasing them on the open market for $193,800, compute the amount of the gain or loss associated with the bond buyback. Prepare any journal entry that would be made to record the retirement. Assume the effective interest method has been used for amortizing premiums or discounts