Problem 2 - Long-Term Debt Vanguard Corporation issued $5,000,000 of 10% bonds on November 1, 2017, due on November 1, 2022. The interest is to be paid twice a year on November 1 and May 1. The bonds were sold to yield 8% effective annual interest. Grove Corporation closes its books annually on December 31. Present value of 1 for 10 periods at 4% Present value of 1 for 10 periods at 5% Present value of annuity for 10 periods at 4% Present value of annuity for 10 periods at 5% Present value of annuity due for 10 periods at 4% Present value of annuity due for 10 periods at 5% 0.67556 0.61391 8.11090 7.72173 8.43533 8.10782 Instructions (a) Calculate the issuing price of the bonds. (b) Prepare the journal entries for 2018 using the effective interest method. (c) Compute the interest expense to be reported in the income statement for the year ended, December 31, 2018