Problem 2 (20%) Tosla Inc. issued $2,200,000, 5% convertible bonds on Jan. 1, 2018 for $2,750,000. Interest would be paid semi-annually on July 1 and Jan. 1. These bonds would mature on Jan 1, 2026 and be convertible at the investors" option after Jan. 1, 2021 into common shares of the company at the rate of 80 shares for each $1,000 in face (par) value. The yield (market rate) on non-convertible bonds issued by companies with credit ratings similar to that of Tosla Inc. was 7% in early 2018. Required 1. Prepare the journal entry to record the issuance of bonds on Jan 1, 2018 (must show work using present values) 2. Prepare the bond amortization table for the first four interest payments only. 2 3. The convertible bonds were repurchased at 94 and retired on Jan. 1, 2020 after the interest due on that day was paid. The repurchase price would have been 92 if the bonds had been non- convertible. Prepare the journal entries for the bond retirement