Problem 4. Assume that the following are independent situations recently reported in the Wall Street Journal. General Electric (GE) 7% bonds (interest payable annually on January 1), maturing January 1, 2037, were issued at 111.12 on January 1, 2017 2 Boeing 7% bonds (interest payable annually on December 31), maturing January 1, 2043 were issued at 9908 on January 1, 2018. Instructions (a) Were GE and Boeing bonds issued at a premium or a discount? (b) Explain how bonds, both paying the same contractual interest rate, could be issued at different prices. (c) Prepare the journal entry to record the issue of each of these two bonds, assuming each company issued S500,000 of bonds in total. (d) Prepare the adjusting entries to record the accrued interest and the amortization of the premium on the bonds for GE, on December 31, 2017 using (1) straight-line amortization, (2) effective interest rate (assumed 55%) amortization (e) Prepare the entries to record the interest payment and the amortization of the discount on mortization, (2) effective interest rate (assumed 7.5%) amortization