Question 1) 20 marks (Space allowed: 1 sheet of paper, i.e. 1 photo) Time allotted: 25 min On January 1, 2018, when the market rate was 12%, Global Company issued $1,000,000, 10%, 5-year bonds. Interest is payable semi-annually on June 30 and December 31. The bonds were issued for $926,399, and the corporation uses the effective interest method of amortizing bond premium or discount a) Prepare the journal entries to record the issuance of the bonds and the interest payments in 2018. b) If the bond were delayed for issuance until May 1st, 2018, how much cash proceed would go to Global? (Show calculation for marks; Hint: Accrued Interest) c) True/False (True, no explanation; False, explain) Global is paying less interest expense because the coupon rate is 10% which is lower than the market rate of 12%