Problem IV (10 points) Estimated time to complete -15 minutes in March of 2018, the Santa Teresa Glass company factored accounts receivable that had a book value of $700,000 to factor Bank. The transfer was made without recourse. Under the arrangement, Santa eresa Glass Company transfers the $700,000 of receivables to Factor, and Factor immediately remits to equal to 85% of the amount factored amount. Factor retains the 15% Santa Teresa Glass Company cash to cover its factoring fee of 5% of the factored amount and to provide a cushion against potential sales After Factor has collected cash equal to the amount advanced to Santa Teresa remits the excess to Santa Teresa. Therefore, under the arrangement up-front and a "beneficial interest" in the transferred receivable the receivables to be collected (which management estimates returns and allowances. plus their factoring fee, Factor Factor provides Santa Teresa with cash equal to the fair value of the last 15% of to equal S 80,000) less the 5% factoring fee. Factor will be paid up front but from amount 15% retained Required 1. Prepare th e general journal entry to record the transfer of receivables to Factor Problem V (8 points) Estimated time to complete -5 minutes Assume the same facts as in "Problem IV", except that Santa Teresa sold the receivables to Factor with recourse and estimates the fair value of the recourse obligation to be $10,000. Required: 1. Prepare the general journal entry to record the transfer of the receivables to Problem VI (15 points) Estimated time to complete-10 minutes. Chance Corporation issued on January 1, 2018 a $600,000 6%, 10 year bond when the effective rate of the bond was 8%. This bond pays interest semi-annually on January 1st and July 1st of each year. Required: 1. Prepare the necessary journal entry to record the issuance of the bond. 2. Determine the total interest expense to be reported in 2018. 3. Show the balance sheet presentation of this bond at December 31 2018